Money politics practises after 2008 global fi̇nancial crisis: Examplification of Turkey

The financial crisis, took place in the USA in the last quarter of the year 2008, spread worldwide in the advancing periods, and has affected the whole world. The policies applied and deficiencies regarding control structure, the current financial structure that exists in the market caused unpredictable problems to occur. This crisis suggested that the fragilities occurred in financial markets could not be overcome by applied monetary policies and that these policies have fallen behind the process. Before the 2008 financial crisis, it was assumed that the financial stability could reach to the balance, using price stability as a political means and assuring price stability. It was understood after the crisis that central banks are required to follow macroprudential policies in addition to the policies for price stability and financial stability. The fact that developed economies have begun to follow unconventional policies after the global crisis in 2008, which caused some problems in macroeconomic structures of developing countries to come into existence. As described in Turkey case, the fact that developing countries couldn't take an appropriate stance against said policies and that fragilities occurred in the financial markets, which caused the fast spread of credit expansion and of capital movements. This brought macroeconomic policy searches compatible with world economies into the forefront and put forward the necessity of the application of additional policies in addition to current monetary policies. This study consists of successive four sections. In the first and second sections, the reasons and consequences of the 2008 financial crisis, its effects on developed and developing economies were searched, and the importance of macroprudential policies that should be followed in addition to conventional monetary policies that fell behind in monetary policies was laid emphasis. In the third section, changed monetary policies tools following the 2008 financial crisis, and the process following financial liberation, in which, capital movements and credit expansion became widespread, were discussed. In the fourth section, this process was evaluated in Turkey case, in terms of developing countries and newly appeared monetary policy tools were discussed. An empirical method wasn't used in the study, and a literature review-based examination was performed. Keywords: Financial Crisis, Non-Traditional Monetary Policy, Credit Expansion, Capital Movements, Macro Policy Approaches in Turkey