The impact of public domestic and external debt ratio on inflation, unemployment and growth in Turkey

While public debt is used as a tool to meet the financing needs of the state, it can also bring economic effects. Sustainability and effective use of debt have become an important element of fiscal policies. Therefore, public borrowing policies should be shaped in line with economic stability and sustainability goals due to the fact that. The increase in public debt can have significant effects on macroeconomic indicators. The Turkish economy has faced many economic crises since the proclamation of the republic and is struggling with some economic problems nowadays. The effect of debt, which has increased in recent years and become almost a habitual source of income for the population, on macroeconomic variables, especially economic growth, has been an interesting topic and a wide literature has emerged on this subject. The study includes a review of theoretical and empirical studies on the macroeconomic effects of public debt. It is stated that the relationships between domestic and external debt stocks and economic indicators are analyzed with NARDL analysis. The aim of this study is the effect of public domestic and external debt ratio on inflation, unemployment and growth in Turkey.