A Different Perspective to 2000-2001 Turkish Economic Crisis: A Review in the Framework of Asymmetric Information Theory

With financial liberalization processes which started during the 1980’s, Turkey and the other emerging market economies have experienced many financial volatilities. From past to present, the most severe of these for Turkey is certainly the banking and currency crisis experienced in the period of 2000-2001. In tis study, the Turkish 2000-2001 Crisis, which takes special attention in academic literature in terms of their results and the economic damages, are analyzed under the asymmetric information theory; the factors which are thought to trigger in crises such as financial liberalization, negative macro-economic indicators, deposit insurance, moral hazard problem and deterioration in the banking sector balance-sheets are evaluated and the consistency of this severe crisis with the theory is investigated