Effects of 2008 global economi̇es cri̇si̇s on developi̇ng countri̇es: Turkey and Brazi̇l example

Second half of 2007, in the result of serious problems, which of the started in the US, housing market have taken place to decline in the asset prices, household's wealth in the developed markets. This situation caused to be contraction in the domestic demand and serious deterioration in the balance of major investment banks. When the global economic and financial integration reached a high level, these developments have begun to affect the rapidly all World economy since 2008. Instability have occur in the financial markets of developed countries and have spread developing countries in time and this has deepened the impact area, severity of financial crisis because of negative impact on the real sector of the contraction in domestic demand and for failing to fulfill the basic functions of financial institutions. Cause of the crisis, liquidity and sloppy loans granted as a result of these; excessive securitization, lack of transparency, lack of effectiveness of rating agencies, and regulatory and supervisory organizations can be listed as the delay in intervention. The crisis has affected the entire World economy and also growth rate has been dropped by. Together with the crisis, the unemployment rate increased and huge losses occurred in the financial markets. Various measures taken by governments taken by used to struggle against the crisis. In this study, we compare the degree of the two countries affected by the crisis. The crisis have affected almost the same degree financial sector, real sector and macroeconomic changes in Turkey and Brazil's economy.