Ekonomi İnflation in Turkey
Transcript of Ekonomi İnflation in Turkey
-
8/14/2019 Ekonomi nflation in Turkey
1/17
Bnyamin Gler & Yigit Ergl ( BUS 07 )
08/05/2008
-
8/14/2019 Ekonomi nflation in Turkey
2/17
Background of inflation.
What is inflation ?
How does inflation exist ?
Costs of inflation.
Inflation in Turkey.
Calculation of inflation.
The situation of Inflation in Turkey.
Discussion.
Resources.
-
8/14/2019 Ekonomi nflation in Turkey
3/17
Relation between inflation and economical growth has
been a discussion topic for a long years.People had a
several comments and ideas on this relation. According to experts,Until 1980s inflation was a
positive improvement which was related with
economical growth. However,at the last 20 years economic experts said
that according to their researchs, inflation effects
economical growth in a negative way. But still experts havent got an agreement on this topic.
Source: http://www.nuveforum.net/41-ekonomi-taslaklari/39257-enflasyon-nedir-nasil-hesaplanir-nasil-yorumlanir/
-
8/14/2019 Ekonomi nflation in Turkey
4/17
What is Inflation?
Theorical:The rate at which the general
level of prices for goods and services is
rising, and, subsequently, purchasingpower is falling.
Source: http://www.ntvmsnbc.com/news/222962.asp
Practical:inflation means that your money
wont buy as much today as you could
yesterday.
-
8/14/2019 Ekonomi nflation in Turkey
5/17
How does inflation exist ?
The government prints too much money(money supply)
Increases in government taxes and fees can
lead to inflation.(especially when businessesare taxed)
When the cost of business goes up, productprices go up.(When prices go up your incomeeffectively goes down.)
Which then makes the business costs go upand so prices go up and so on
Source:http://www.nuveforum.net/41-ekonomi-taslaklari/39257-enflasyon-nedir-nasil-hesaplanir-nasil-yorumlanir/
-
8/14/2019 Ekonomi nflation in Turkey
6/17
Costs of inflation.
Shoeleather costs
Menu costs
Tax liabilities Uncertainty
Arbitrary redistribution of wealth
Competitiveness (if our prices are increasing
faster than prices in other countries, then ourgoods will be less competitive and less in
demand. This will have a negative effect on the
balance of payments.)
Source:Victoria Bsch
-
8/14/2019 Ekonomi nflation in Turkey
7/17
Inflation in Turkey.
Turkey experienced a short period of
high inflation in the second half of the
1950s but the history of todays high andpersistent inflation goes back to the first
half of the 1970s at the earliest.
-
8/14/2019 Ekonomi nflation in Turkey
8/17
This high and persistent inflation
rates since the early 1970s has
been fed by ;
High public sector budget deficits,
High military expenditures associated with geopolitical
reasons,
Occasional increases in world prices of major imported
inputs (particularly, crude-oil)
Increases in regulated prices of public sector products
which are mainly used as input by the domestic private
sector Massive infrastructure investments of the various
governments.
-
8/14/2019 Ekonomi nflation in Turkey
9/17
Annual Inflation Rate in Turkey
-
8/14/2019 Ekonomi nflation in Turkey
10/17
Annual Percentage Change
-
8/14/2019 Ekonomi nflation in Turkey
11/17
Annual Percentage Change
-
8/14/2019 Ekonomi nflation in Turkey
12/17
Annual Percentage Change
-
8/14/2019 Ekonomi nflation in Turkey
13/17
The Prices Before 2005
A bottle of drinking water: 300,000 TL
Movie ticket: 7,500,000 TL
Toyota Corolla: 32,900,000,000 TL (32 billion) Turkish GDP in 2002: 273,463,167,795,000,000 TL
(273 quadrillion)
The highest-denominated banknote (20,000,000)was used only in Turkey
Source:http://www.econ.umn.edu/~steve/2006_1102h/ytl.pdf
-
8/14/2019 Ekonomi nflation in Turkey
14/17
Redenomination of the
Turkish LiraRemove 6 zeros
The new currency: Yeni Trk Liras(YTL) (The New Turkish Lira)
Conversion Rate: TL 1,000,000 = YTL 1
-
8/14/2019 Ekonomi nflation in Turkey
15/17
Discussion
Do you think redenomination has
effect on inflation rate?
-
8/14/2019 Ekonomi nflation in Turkey
16/17
Resources
http://en.wikipedia.org/wiki/Economic_history_of
http://w
ww.internationalmonetaryfund.org/external/pubs
http://eupolitics.einnews.com/news/eu-turkey-inf
http://www.tcmb.gov.tr/yeni/announce/2008/Gowww.tcmb.gov.tr/yeni/announce/2008/Go
vYilmaz_InflationReport1Pres08.pdfvYilmaz_InflationReport1Pres08.pdf
http://en.wikipedia.org/wiki/Economic_history_of_Turkeyhttp://www.internationalmonetaryfund.org/external/pubs/cat/longres.cfm?sk=2443http://www.internationalmonetaryfund.org/external/pubs/cat/longres.cfm?sk=2443http://eupolitics.einnews.com/news/eu-turkey-inflationhttp://eupolitics.einnews.com/news/eu-turkey-inflationhttp://www.internationalmonetaryfund.org/external/pubs/cat/longres.cfm?sk=2443http://www.internationalmonetaryfund.org/external/pubs/cat/longres.cfm?sk=2443http://www.internationalmonetaryfund.org/external/pubs/cat/longres.cfm?sk=2443http://en.wikipedia.org/wiki/Economic_history_of_Turkey -
8/14/2019 Ekonomi nflation in Turkey
17/17
Bnyamin Gler
Yigit Ergl