Abstract:

Abstract liberalization in the financial market causes financial integration, increased risk and encourages new financial instruments. This liberalization not only finances economic growth with foreign capital flow but also brings systematic risk phenomenon as well. If the local integration getting increased, financial instability in one local economy spillovers into the world economy which means that this financial instability is not local but global problem now. It is not possible to estimate the size of this effect but we know that all crises destroy macroeconomic policy and create financial fragility. The purpose of this study is to investigate the effects of the global current crisis, which starts in the USA in 2007, on financial markets of developing countries and Turkey. Keywords: global crisis, developing countries, financial part, Turkey

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