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Inflation And Price Level

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ROHAN2 WORLD 1-120 TR TİPİ OFFICIAL YOHARA, BALATHOR VE AMON! 80. GÜNÜNDE! +10.000 ONLİNE! HİLE VE BOT %100 ENGELLİ HEMEN TIKLA!

INFLATION AND PRICE LEVEL
(The period of 1973-2000)



At first,we should think about the different procesesses that the Turkish economy had transmitted since 1923. these processes had sometimes good,somestimes bad effects on our economy. Our economy has been effected by different events as,world conomy,wars,political confederations,new economical ideas,differances on governments,earthquakes. The most important problem of our country’s economy is the inflation which can be explained by the society. As an explanation for the word economy,we can say that it is the important and the regular increasing of prices. Today, we are using two methods for calculating inflation ratios. These are whole saler price index and the consumer price index. These two indexes show both the total prices of goods and services. By using these total priceses we are able to calculate the increase on prices annually and montyhly. As a result we can find the inflation ratios by using whole saler price index or consumer price index. Of course inflation is an event which hs bad effects on a countries economy,because the regular increases on the prices of goods,in otherwords the depreciation on money level make restrictions on the societies life and also the wellfare of the society can’t continue on these conditions and the income distribition had been effected in bad way. As you see,we fight with inflation and the conditions that occurs by the effects of inflation. There are two basic ideas for solving the problem of inflation can be solved by reducing the supply of money,by redacting the delegation and also they believe that the delegation should have intervention on the markets.

But the structurals think that on the proscess of development,the inflatıon problem can cause imbalances on supply and demand curues and also it can cause increases on prices. In the other words, monetaries are defending liberalism although the structurals are defending a system which is under the controll of delegation ,for a marketing system that is going an order.

The subject of inflation and the degree of prices can be examined in three headlines for the period between 1973-2000:

i. The period of 1973-1979
ii. The period of 1980-1989
iii. The period of 1990-2000

1. The Period of 1973-1979




At 1970, we have experienced the first oil cris and the oil prices increased fourtimes from its first price. But the Turkish economy was still going better because of the regulated economic system which has been used from 1963 to 1973.

But the weapon embargo that U.S.A had praticed and also the embargo which European countries had done ,in additon to these the increase of oil prices on 1974,had bad affects on our economy . also the decrease of the prices on agricultural products caused decreases on exportation of Turkey.

In spite of these ,turkey didn’t have any economization about oil because we had had automobile production tied to foreign investment and the consumption of all was multiplied with two,although whole world had economized oil.

Because of these events,1974 inflation had increase from %20s to %30s. At 1975 the custom taxes casteddown and the ratios of develition was lower than the ratio of inflation; in the other words, the value of Turkish money seems to be more than its real value, thise caused an increase on importing and caused an increase on budget deficit.

In addition to these in 1975 we have began to use DÇM by the gurante of public. At 1978,we have experienced the foreign currency cris. The reasons of hardship about the payment of short term debts are ;The exaggesated value of Turkish Lira,The increase of deficit on international trade,the debits which had began by the importing guranteed by government and inflation reached to %53s.

We have tried to get away from the second oil cris by the stability program of IMF and by develiation,at 1979. at 1980 the inflation showed itself on the money items.

2:The Periods of 1980-1989




These period has began by the 24 January decisions which have been decided under military direction and these decision has a target, named as liberalsim.

A new type of economic thought showed itself which was created by the affort of America and England.This can be determined as accretion tied to exporting; by the way as a country which uses the credits of IMF, we had to comform this economical thought.
The decisions that had been taken after 1980’s decreased the inflation %100’s to %35. Ofcourse the military direction have great importance on that time because they didn’t make any increase on the salary of the emloyees or they didn’t give any sendicatical rights.

İn this period the war between Iran and ırak had good effects on Turkish economy. Also in this period we had had a great increase on our exporting ratios, may be this can be reason for being the most powerfull country ont area around us. But on the other hand the inerest rates had been decreased and this can be determined as the worst ecent for finance word in Turkey.

Inflation was at %35 betwen the years of 1980-1988 , but by the hardship that we had ecperiencesd about the payments of short-term debits, the inflation increase to the value of %70s.

We can say that the Turkish economy have had a succesful period before 1989 bu at 1989 Turkish aconomy had jumped into a period which can be named as stagfliation. Because of stagfliation, the government took the Februrary 4 decisions for surveving the economy from stagfliation.

3.The Periods of 1990-2000



In this period, the Turkish economy would be affected from the itriacy in the world becaouse the cris was still going on, in Turkey. At 1990, a newperiod had begun by the collapsing of SSCB and y the evaporation wast black.In this period America and the other west countries reduced the credits that they were gşvşng to the developing countries. They did this just for protecting themselves from cominism. By the way capitalism began to be a ruthless system. At 1991 a new period began for Turkey which is on easy, in this period Gulf war affected our economy and the infliation increased from %50s to %60s. Of course the reason of these are the embargo that had been regulated to Irak and the ecpenses for defencing.

After these events there were no any important change untill 1994. But after 1993 some events caused undulation on finance market; these events were, the trade defisit, short-term froeign investment entires, the tap revenues were not able to pay the investment deoits. In this period, dolar was at the value of 14000TL but the balance finally found, and the dolarhaf the value of 30.000TL. By results of thies event, hiper infliation began. As a salvaition way, the April 5 decisions have been taken. At 1995 the inflation degree was decreased to %65 but it has increased at 1996-1997. at 1998,the Turkish economy had expreinced stragration for time by the cris of Asia. The effects of the cris increased by the government change in Russia and the decrease in suitcase trade. The suitcase trade was an important type for Turkish exporting by the restructions that Russia government has done;our exporting decreased.

On the other hand,the wrong fiscal policy (mali milat) which the government praticed with the target of (kayıt dışı) black market; caused banks to lose their capital, by the way,in the market ,there was a hardship of currency (liquidity). At 1999 earthquake also effected the Turkish economy.


 

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