Turkey`s search for stabilization after 2000 and the relations with the International Monetary Fund (IMF)

Turkish economy has been in a chronic high inflation process for nearly a güarter of a century. Ongoing budget deficits, political unstability, ideological polarization and unequal distribution of income were primary sources of this process. Recent progresses in Turkey's full membership status into European Union and the Customs Union which has been effective since January 1st 1996, gave a boost to the country's fight with inflation. By encouraging speculative behavior and by consequently harming the reel economy, inflation has become a major problem that needs immediate attention. Therefore, in this research, stabilization actions that have been taken by the authorities and also, Turkey's relations with International Monetary Fund (IMF) were examined. In the first part of the research, after presenting some facts about IMF, Turkey- IMF relations were examined. Second part includes, Turkey's program on dealing with inflation and this program's performance during 2000 along with the financial crisis occurred. In the third and the last part of the study, Transition to A Strong Economy Program and its progress was analyzed in conjunction with the February 4m 2002 Letter of Intent.