Abstract:

In terms of Turkey's economy last 5 years, especially giving of the high current account deficit and fragilities that occurs in the result of these developments, have placed external balance into the center of politics has turned to provide macroeconomic stability.Therfore to develop a reliable politic plan about current account primarily, questions about how much of current account deficit in any period countercylical and how much of it’ s problems are structural are have to be answered. Another discussion focuses on causes of current deficit and its finance qualification. As in every developed and developing countries, Turkey gives current deficit too because of the positive economic growth depending on high investment good importing This trend emerges as a higher growth rate when current deficit is high and as a lower growth rate when current deficit is low. In terms of financing, it is important to answer the deficit through short or long term financing.                 The Turkish economy, the short-term near, considering the history of the move of the current account balance cyclical factors, it is observed that close to each other. To the intensive use of imported inputs in the production process, imports national income move in the same direction, and hence the sensitivity to the growth of the current account balance is high.                 When designing a policy for the current account balance it is important that you be present to answer certain questions: Cyclical deficits current account balance in any period depends on how much of a part, or the current account deficit in the formation of domestic demand and external demand and what is the role of domestic and international prices. This study is to contribute to answering the aforementioned questions about the dynamics of the current account balance in Turkey and built on the ground in order to contribute to a healthy discussion of cyclical and structural components of the current account balance are evaluated.

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