Abstract:

Macroeconomic vulnerability which is one of the different vulnerability categories states the risk of being fregile to the unpredictable domestic and foreign economic events. So, it is absolutely different from other vulnerability categories. At first, vulnerability concept was used to define the structural vulnerabilities of the small island countries. But then, because of an increase in financial crisis and global macroeconomic instability, vulnerability has become popular. In this context, a lot of indexes has been created and used. The indexes created recently has emphasized that Turkey is among the most vulnerable countries. This situation encouraged us to understand Turkey’s vulnerability position and compare it with Shanghai Five countries. By the result, Turkey is vulnerable about current account deficit and domestic credit growth. The purpose of this paper is to compare the vulnerabilities of Turkey and Shanghai Five and develop a policy for Turkey.

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