The possible effects of the european debt crisis on the Turkish manufacturing industry with the help of the 2008 crisis

Orthodox Business Cycle Theories have failed to explain the 2008 crisis. Hyman Minsky's financial instability hypothesis has revealed the significant causes of the 2008 Crisis. Minsky argues that the current financial structure has increased financial fragility. For this reason, he is of the opinion that the financial markets should be controlled. The global economy contracted sharply due to the negative effects of the Crisis of 2008. Many global banks went bankrupt in 2008 Crisis' panic environment. Billions of dollars in extremely risky financial assets of some troubled banks were intervened by governments. As a result of these interventions, some European countries experienced serious problems with the refinancing of the public debt. Turkish Manufacturing Industry's production performance indicators declined sharply due to the negative effects of the 2008 Crisis. The export performance of Turkish manufacturing industry severely dependent on the European market. Therefore, against the negative effects of the European debt crisis, the Turkish Manufacturing Industry needs to be strengthened in structural terms. Key Words: 1. Financial Instability Hypothesis 2. Crisis 3. Turkish Manufacturing Industry 4. Debt Crisis 5. Risky Financial Assets