What can Turkey learn from Argentina?
This paper compares the experiences of Turkey and Argentina in the face of the recent global economic meltdown. The historical and economic peculiarities of these two countries render them as perfect comparative case study. They both historically had acute macroeconomic instabilities with high inflation rates and internal and external disequilibrium. In both countries volatility in economic growth rates (stop-and-go cycles) have been associated with current account and fiscal deficits. They both adopted a number of stabilization policies guided by the IMF which were all unsuccessful. They both got into the new millennium with almost simultaneous (February 2001 in Turkey and December 2001 in Argentina) and the most severe economic crises in their histories. They both have experienced very rapid growth rates since their economic crises. Economic recovery in Argentina has been in a better shape and more sustainable than Turkey. Although both countries will inevitably face the negative impacts of the global crisis, the impact is likely to be more severe for Turkey. (original abstract)
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