The budget deficit, finance methods and macro economic effects in Turkey

Budget deficits, their financing and effects on macro econonomic variables is one of the most debated topics whether academic or politic level( floor) when especially globalization speed up with 1990`s. Admittedly this situation is closly related with the changing of mentality about the place of government in economy namely the paradigmal changes. Consequently budget, budget deficits and their financing is a topic which effected by value judgements and ideologies.This issue is very important for Turkey which lives with high budget deficits and macro economic instability for many years especially after 1990`s period. Because the analyses the effects of budget deficits and financing methods on macro economic developments enable to improve some political offers for more stable macro economic enviroment.Referring to this importance, the main aim of this study is evaluating the budget deficits and their financing methods in Turkey and analysing their macro economic reflections.Within the context of this aim, in the first part of the study, reasons of budget deficits, potential financing methods and after finance methods macro economic effects of the financing methods were discussed. In the second part budget deficits and their financing methods were analysed from the point of view of periods, date from republic to nowadays. In the last part the budget deficits after 1980`s in Turkey and macro economic effects of their financing methods were tried to introduced by econometric models and statistical methods.Keywords: Budget Deficit, , Turkish Economy, Debt, Monetization, Privatization