UGİ364

School of Economics and Administrative Sciences \ International Entrepreneurship

3

6

Elective

Turkish

-

All Departments

For this course, which covers the current state and developments of the Turkish economy, a theoretical foundation is first established. After constructing this foundation, fundamental economic concepts such as national income, growth, inflation, and labor force are defined, explained in detail, and analyzed in terms of their current levels compared to developing countries and other regions. Additionally, possible future paths based on key data are examined.
Another key pillar of the economy, monetary and fiscal policies, is analyzed in detail. The course explores how these policies shape current developments and, conversely, how current developments influence the direction of these policies.
Regarding monetary policies, the policy tools of the Central Bank and the markets within its structure are examined in depth. The literature on central banking covers issues such as central bank independence and access to accountability and responsibility principles within the framework of the inflation targeting regime. Another topic is the critical role of the Central Bank’s policy interest rate and the monetary transmission mechanism in achieving its primary objective of price stability. The current level of the policy interest rate and its impact on the monetary transmission mechanism are analyzed. The current state and outcomes of the balance of payments are also evaluated.
On the fiscal policy side, key budget components, debt servicing, domestic debt rollover ratio, primary budget surplus, and the ratios of budget deficits and public deficits to national income are examined, along with relevant current data. Additionally, the actions taken by the Treasury in financing the public deficit and the current composition of public debt are analyzed.
Besides these topics, the framework of actions taken by the Federal Reserve (FED) and the European Central Bank (ECB) and their implications for the Turkish economy are also among the subjects to be discussed.

Joseph E. Stiglitz, Economics of The Public Sector W.W Norton,NY
Back to Basics, Economic Concepts, IMF,2017.
Türkiye Ekonomisi. Mahfi Eğilmez. Remzi Kitapevi.
Endekslerle Türkiye Ekonomisi. Burak Arzova. Remzi Kitapevi.
TCMB Enflasyon Raporu, Finansal İstikrar Raporu, PPK Kararları
TÜİK verileri

This course aims to analyze the current state and development process of the Turkish economy. Students will learn fundamental economic concepts such as national income, growth, inflation, and labor force, gaining the ability to evaluate Turkey’s economic indicators in a global context.
Additionally, how monetary and fiscal policies are shaped by current developments and how these developments influence policy implementations will be examined in detail. The Central Bank’s policy tools, monetary transmission mechanisms, budget dynamics, and public finance issues will be addressed, and current discussions regarding the Turkish economy will be evaluated.

1. Can define and analyze the fundamental concepts of the Turkish economy, including economic indicators such as growth, inflation, and labor force.
2. Can conduct quantitative analyses using economic data and evaluate the effects of policy decisions.
3. Can position the Turkish economy within the global economic system and conduct comparative analyses with international economies.

Week 1: Introduction to Economics
Week 2: Fundamental Economic Concepts: Growth, Inflation, Labor Force, Leading, Coincident, and Future Indicators
Week 3: Fundamental Economic Concepts: Growth, Inflation, Labor Force, Leading, Coincident, and Future Indicators
Week 4: Monetary and Fiscal Policies and Their Applications. Open Market Operations (OMO) and Examples from Current Developments
Week 5: Monetary and Fiscal Policies and Their Applications. Open Market Operations (OMO) and Examples from Current Developments
Week 6: Budget Deficits and Financing. Government Domestic Borrowing Instruments and Eurobonds. Assessment of Turkey’s Current Situation
Week 7: Balance of Payments, Foreign Trade, Current Account Balance, Exchange Rate Regimes, and Foreign Capital. Effects of Exchange Rate Increases on Foreign Trade (Marshall-Lerner Condition), Current Account Deficit Financing. Examples from Current Developments. Turkey’s Current Account Deficit Problem and Its Effects
Week 8: Balance of Payments, Foreign Trade, Current Account Balance, Exchange Rate Regimes, and Foreign Capital. Effects of Exchange Rate Increases on Foreign Trade (Marshall-Lerner Condition), Current Account Deficit Financing. Examples from Current Developments. Turkey’s Current Account Deficit Problem and Its Effects
Week 9: Relationship Between Inflation and Growth. Sustainable Growth. Turkey’s Policy Preferences
Week 10: Federal Reserve (FED) and European Central Bank (ECB) Monetary Policy Implementations and Their Impact on the Turkish Economy. International Trade Theories (Supply and Demand Models, Factor Endowment)
Week 11: Key Indicators and Indexes in the Turkish Economy and Evaluation of the Current Situation
Week 12: General Evaluations

Midterm 40%
Final 60%