Deconstructing the Functioning of Political Manipulation of the Economy in Turkey
UNDERSTANDING THE PROCESS OF INSTITUTIONAL CHANGE IN TURKEY: AN INSTITUTIONAL APPROACH, Tamer Çetin, Feridun Yilmaz, eds., Nova Science Publishers, 2010
21 Pages Posted: 7 Jan 2011
Date Written: 2010
As evident in the related literature, the political manipulation of the economy is a prevalent norm; however its functioning may differ in each economy. This paper, thus, aims at taking the analysis a step further by investigating the nature, distinguishing characteristics, and mechanisms through which political manipulation of the economy are exercised in Turkey, thereby it identifies the country specific differences in the way political business cycles are exercised. The analysis renders support for the micro-level policies for political manipulation of the economy, rather than systematic manipulation of fiscal and monetary policies as suggested by political business cycles modelling. However, such policies still have macroeconomic consequences, which create disequilibrium in the economy.
Keywords: Political Manipulation of Economy (PME), Political Business Cycles (PBCs), Distinguishing Characteristics of PBC/PME, Functioning and Working Mechanisms of PBC/PME, Turkey
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