TURKEY’S PLACE IN THE WORLD ECONOMY

TURKEY’S PLACE IN THE WORLD ECONOMY

                Our country is like paradise. Every corner has a unique beauty. Turkey can comparable with very few countries in the world about the history and culture. We have the most fertile soil and the most strategic location in the World. Nobody can argue with them. So, where are we in the world in economic terms? The World turns into a structure centered economy. People choose and dismiss government according to its economic performance. In today’s world, property, peace, health and happiness path through the economy. Powerful states are indebted this power to the its economy. Countries which makes its economies strong are leading the world. In this context, knowing that how is our own country’s economy arises.

                First, let’s look at the most general perspective. The initial viewed data when economies reviewing is GDP. Let me briefly mention what that meant before entering data. GDP is produced everything in a country in a time slot. Turkey’s 2013 GDP is calculated as $ 822 billion. When world countries are ranking about this data, Turkey can find a place ranked #17. Meanwhile, there is an important detail. Turkey is one of the largest 18 economy for nearly 60 years.  But there is a more specific information that are providing information on the economic level of the people from total GDP. It is per capita GDP. GDP per ca-pita finds GDP divided by the population. It is $ 10.404 for Turkey. The GDP per capita ranking situation does not seem very encouraging. Our country ranked #62 in the world in this data. It needs to be made clear that Turkey’s national income per capita is not move forward for more than five years.

                Let’s look at this in terms of agriculture. Turkey is known as an agricultural country. Our country with fertile soils and agricultural traditions has high agricultural potential in countries. If we look at the data that interest us, we see Turkey’s agricultural revenue at $ 62 billion. In this respect, we first rank in Europe. If we look at the world we rank #7. We is one of the country that have a say in the world about agriculture. But we are well below than our agriculture potential. So, Turkey will be able to have higher levels of agriculture production wit the right policies.

              

       Another indicator of the economy is industrial production and industrialization level. Industrialization is an essential condition for economic development. Our country is seems underdeveloped of industrialization of western countries. We look better than the Asia and African countries

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                Another indicator is the financial indicators. We need to look at the performance of the İstanbul Stock Exchange to evaluate it. Borsa İstanbul has a market capitalization of $ 196 billion  and 416 companies. İstanbul Stock Exchange is ranked #37 in 57 world stock exchanges. İstanbul Stock Exchange is trying to become more powerful over time.

               

          All under the guidance, we have an idea about our country’s economic position in the world.  Turkey is in the case below its potential. Making some reforms and changing policy seems inevitable for our  economy climb to upper ranks.

P.S: I am so sorry for my English. It is getting better in time.

WHAT HAPPENED THE FED INCREASE INTEREST RATE IN TURKEY?

WHAT HAPPENED THE FED INCREASE INTEREST RATE IN TURKEY?

CURRENT STATUS

                Everybody knows the global banking economic crisis that US-based erupted in 2008. This crisis took place as the greatest crisis since the Great Depression in 1929 by economists. We can say that the crisis’s reason is excessively loose credit policy in America. I said American Central Bank FED how to follow the effects of the crisis to minimize. The FED was forced to go outside the usual policy in fighting the crisis. It has aimed to revive and thus reduce unemployment rates that reaching record levels by implemented an expansionary monetary policy. Besides it has attracted the interest rates for a lot of players in markets provide cheaper funds. This policy result in increasing the amount of circulating dollar has become cheaper against other leading currencies and dollar has shifted developing countries (Turkey, Indonesia, India, South Africa) to obtain higher returns. Because these countries has high interest rates. So abundant and cheap dollar entry to our country. As a result, borrowing costs have fallen and this has pushed markets dept by dollar.  We can see that most of the company’s foreign currency debt is dollar denominated debt.

WHAT HAPPENS WHEN INTEREST RATE INCREASED?

                So, what happens if increased interest rate in United States in Turkey? The first thing that can be told to leave amount of dollar from Turkey. Economists said this situation is so bad for our country. The rationale is that Turkey’s economy needs or dependence hot money a lot. Our economy is too fragile. On the other hand, the person that borrowing cheaply in dollar so worried. News of the rate hike (not itself) causing the dollar is appreciation against the lira. In the situation that news flow indexed troubled end of 2015 awaits people that has dollar debt. In light of all them a difficult period comes for Turkey we can say. I hope the economy management will take the necessary measures during this period and our economy will bump the least damaged this process

P.S: I am so sorry for my English. It is getting better in time.

HOW THE MONEY DID GET ITS FUNCTİON?

HOW THE MONEY DID GET ITS FUNCTİON?

                Pieces of paper and little, round coins that we are calling money are essential for our daily life today. If we say we continue with our lives by this small toll maybe a bit of an exaggeration but certainly we do not have lied. In recent years, thanks to the great success of bank increased thanks to the use of credit and debit cards have decreased although not missing anything from money function. It sees more value than real value. But the money is an human invention and there is a period where there is no money.

                Previously Egyptians were used object that similar to money. But the money was found by the Lydians in the 7th BC in west of Anatolia. Well, how people were doing shopping? I thing the first thing that comes to mind people shopped by clearing. Yes, before the money people were giving an another property as a response when buying a property. If we compare this practice, undoubtedly negative properties will be more than positive properties. Firstly, every good had hundreds of price cause of there were any unit for evaluate. This was a huge obstacle to the development of trade.  For instance ten apples equaled to eight pears or a jar of molasses or a sack of cotton and its equilibrium varied from region to region. Another challenge of clearing procedure was should be overlapping needs of buyer and seller side. For example, the person who selling apples had to need pears and the person who selling pears had to need apples for shopping. In this situation as natural the trade have not develop and the people have not get reach.

                After this period, people began to use some object to exchange according to where they live and step closer to current monetary phenomenon. In some places, sea shells or wheat mediated shopping.  These are the first object that showing  the distinction of being  a exchanged tool.

                Then people have begin to use the gold and silver as money instead of other objects. Gold and silver that cut  different sizes were used for daily shopping and also surplus of these were saving. Thus money earned function of deposition tool. Humanity used gold and silver as money for a long time.  Of course this system was also weaknesses bu today’s monetary system is approaching.

                Today the money that we are all in hands and our wallet, firstly  appeared in England. Banknote system based on state-guaranteed. So value that on the banknote is secured by the government. This pieces of paper would not be possible buying selling in excess of its value otherwise. Today the money is generated and released by the government. This is called the money supply in the economics. The government keep under control the economy thanks to money supply.

                The economic significance of the money is undoubtedly very large. The money that the protagonist of economic activities is the only object provided people, countries and states getting poor and rich. The money is one of reasons that many major crisis in economic history. We can count thousands of examples that will allow us to understand the importance of money. But in our age there is a more important issue than having money. It is how to use the money. the main topic is that.

               P.S: I am so sorry for my English. It is getting better in time.