Estimating Financial Pressure in Türkiye with Key Indicators
Chapter from the book: Seyhan, M. (ed.) 2024. Selected Topics in Business Domain.

İlhan Bal
Gaziantep University

Synopsis

Since 1990, studies on the financial crisis and measuring financial pressure have gained importance. This is because financial pressure causes financial crisis in the economy. Measuring and analyzing financial pressure will be useful for proper economic management. Creating, measuring and understanding financial pressure with a useful index with the right components will be beneficial to the economic management of countries in preventing the financial crisis or overcoming it in a controlled manner. The aim of this study is to create a financial pressure index with certain components to measure financial pressure in Türkiye. Components such as inflation, external debt, capital market, country risk and money market were used when creating the Financial Pressure index. The principal components method was used to calculate the financial pressure index. In this study, which examines data between January 2010 and May 2023, it is seen that Türkiye detects periods of contraction and prevents financial pressure, except for unexpected situations such as some political events or the COVID-19 epidemic. The analysis results show that exchange rate volatility and high inflation in the world greatly affect the financial pressure in Türkiye.

How to cite this book

Bal, İ. (2024). Estimating Financial Pressure in Türkiye with Key Indicators. In: Seyhan, M. (ed.), Selected Topics in Business Domain. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub448.c1915

License

Published

June 12, 2024

DOI