ekonomi İnflation in turkey

8/14/2019 Ekonomi nflation in Turkey

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Bnyamin Gler & Yigit Ergl ( BUS 07 )

08/05/2008


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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.


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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/


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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.


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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/


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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


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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.


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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.


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Annual Inflation Rate in Turkey


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Annual Percentage Change


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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


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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


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Discussion

Do you think redenomination has

effect on inflation rate?


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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


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Bnyamin Gler

Yigit Ergl

ekonomi İnflation in turkey

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