1929 economic crisis and effect of Turkey

Over the past years, there have been a number of economic crises throughout the world for various reasons. One of these crises was the economic crisis that began in 1929 with the collapse of the New York Stock Market. This crisis, also known as the 1929 Economic Crisis, has had a negative impact on the economy of Europe and many other countries. This crisis has left quite a few negative impacts, such as the decrease in the prices of goods and services worldwide, the decrease in the demand and thereby the contraction of the trade volume, and consequently has deeply affected the whole world. Thanks to the mechanization, which started with the industrial revolution, there were vast increases in the production level. This led to the supply side economics to dominate the social structure and the demand side of the economy was not taken into consideration in this period. The crisis arouse with this importance given to the production more than necessary, the ignorance of the consumer needs and with the consumption reaching the saturation point. In this context, this study examines the 1929 Economic Crisis and its Impact on Turkey. The first part of the study deals with the World Economy in 1929 and the emergence of 1929 Great Depression. In the second part of the study, the impact of 1929 Depression on Turkey's economy is studied. Accordingly, the second part discusses Economy of Turkey before the 1929 Depression, the economic importance of the Treaty of Lausanne, İzmir Economic Congress, Economy of Turkey between 1929 and 1930 and the impact of the 1929 Depression on the economy of Turkey. In the third part of the study, solution policies after 1929 Economic Crisis are discussed. The topics discussed in this chapter are the measures taken towards the 1929 Economic Crisis, statism, crisis and foreign trade deficit, reforms in the foreign trade regime and currency exchange, tax regulations and customs tariff, industrialization plans and national economy and savings society. Key Words: Economic Depression, 1929 Economic Crisis, Industrialization