ABSTRACT
The Turkish economy is by no means an exception, and suffered significantly from the crises of 1994, 2001 and 2008–2009. This chapter investigates the tales of these three crises to shed light on the propagation mechanisms of crises and their implications for developing countries, given the Turkish experience. Although there are many specific characteristics of each crisis, it is possible to see significant similarities between the cases of the 1994 and 2001 crises. In general, the comparison between different crises in terms of gross domestic product (GDP) is based on annual real GDP growth rates. Turkish GDP declined by 4.8 per cent, 5.7 per cent and 4.9 per cent annually in 1994, 2001 and 2008–2009, respectively. However, Turkey's unemployment rate reached very high levels after the initial periods of negative growth in production during the 2001 and 2008–2009 crises. The inflation rate can signal important information about the economic fragility of a country.
