Financial instability hypothesis in the context of 2008 global economic crisis and Turkey

There have been a lot of business cycle and economic crisis in the economies of countries throughout history. Economists came up with various hypotheses to explain the emergence, development and resulting phase of these crises. These hypotheses are tried to be illuminated with the results of the causes of crises.Historical hypotheses which provide a basis for financial instability hypothesis are primarily analyzed in the first chapter . And then financial instability hypothesis is examined in the line of investment, uncertainty, risk, cashflow, and fragility. Finally , criticism from economists to the hypothesis are analyzed and the contribution of these criticisms to hypothesis is expressed.İn the second part , John Maynard Keynes and Minsky's theory of investment is discussed in order to evaluate minsky?s financial instability hypothesis which is the theoretical part of this study . Then Minsky's theory of finance is examined in detail and types of financing used by companies are described in all aspectsIn the third and final part of the study, the explanatory power of hypothesis for the crises experienced in Turkey is discussed. In this context, it is firstly analyzed the historical development of the financial system in Turkey. public and private sector loans in Turkey are then discussed. Lastly, Turkey's economy in the process of economic crisis in 2008 is analyzed. in line with the assumptions of hypothesis. In this way, the emergence, development and resulting phase of these crises experienced in our country within the framework of the financial instability hypothesis is managed to explained