ABSTRACT

Globalization, starting from 1980’s, has established its sovereignty over the world as the liberalization of money and service trade. This dominion was felt rather well in 1990’s. The high growth desire of countries has increased the financial fund flow in the process of globalization. As countries become indebted, in countries with large fund flows, debts of private sector, household, and public have grown. This circumstance has caused an explosion of demand in mortgage credits and real estate, which has created a balloon of credits and real estate. Subprime loans have become default and starting from US, in 2008, the global economy had entered a crisis.The crisis of 2008 is a debt crisis and even though the effects of crisis has ended, countries are in more debt than before the time of the crisis. Turkey had taken advantage of the abundant liquidity, especially, construction and service sectors had grown rapidly. But these growths, which are untradeable, with the effect of raised debt, have ended in 2018. Because of the nature of debt being in foreign currency, interest rates and exchange rates have raised. And thus, Turkey has entered in a debt crisis.