Özet:

In developing countries such as Turkey, long term current account deficits and budget deficits can cause chronic and structural problems in economy. Current account deficits in Turkey are interpreted according to different points of view. According to the first, current account deficits are caused by the increase in demand, in consequence of the overgrowth experienced after the 2001 crisis. The second point of view sees current account deficits as the result of the overvalued domestic currency in consequence of high rates of interest. Budget deficits on the other hand generally occur from public revenues being lower than public expenditures. With the present study prepared in this frame, it was aimed to contribute to economic policy makers in terms of econometrically modeling the direction and magnitude of the variables affecting budget and current deficits and the effects of the internal and external shocks in Turkey on the economy. In this context, in the study macroeconomic variables were displayed in diagrams and the relations between them were visualized by on the basis of the Granger causality test results applied for the period from 1998:Q1 to 2009:Q3

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