Financial System and Policies in Turkey in the 1980s

Abstract

It is widely held that the Turkish financial system during the years before 1980 was highly repressed. The financial repression consisted of: ceilings on deposit and lending rates and negative real interest rates; credit rationing and subsidized credits to priority sectors; excessive taxation of financial incomes and transactions; high liquidity and reserve requirements and intermediation costs; a high degree of interlocking ownership between banks and non-financial corporations; excessive reliance of corporations on credits rather than equity finance and direct security issues, and low-quality bank portfolios; undeveloped capital markets; excessive reliance of the public sector on Central Bank for deficit financing; entry barriers to foreign banks; restrictions on external financial operations, foreign asset holdings and so on. These are widely believed to have resulted in inefficiencies and distortions in resource allocation, with adverse effects on growth. 2 These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 53 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.