Short-term capital inflows and their impact on macroeconomic structure: Turkey in the 1990s

This paper concentrates on the role of speculative capital inflows in aggra vating both the external and public deficit in Turkey, as well as the role of government mismanagement in increasing the instability and in bringing a bout the financial crisis of 1994. The paper also examines the post-crisis period (1995-96) in order to answer the question of whether a new financial crisis will occur.