The transition of Turkish economic policies since January 1980-from an interventionist and inward-looking policy framework to a market-based and outward-oriented neo-liberal model-represented the system’s most important transformation. A major pillar of this transition was the capital account liberalization of August 1989. Since then, Turkey has experienced several shortterm economic crises, the most notable of which were those erupting in 1994, November 2000, and February 2001.