HIGH INFLATION RISK AND GROWTH RATE

This paper examines the causal relationship between high inflation and economic growth in Turkey. While talking about economy, The growth in the economy sounds positive but as inflation word, the citizens most of the time do not have an idea how it can be and how would it influence on the people in the market. The inflation and economic growth are the basic keys of purchasing power of individuals, organizations and the government and if there is one in the market the other one would not be. Here we can easily say that there is a negative relationship between these two terms and the basic purpose of this study is to determine the relationship by the literature review methodology. In the study the academic studies have been researched for defining the terms and the relations. Also, the effects of these terms to people and the producers have been determined. As seen from the daily life, the inflation is a cause and reason of financial crisis and the individuals’ money power decreases day by day with the inflation. The study does not have an interview or a questionnaire application for the proof of the literature results and this has been accepted as the limitedness of the study