The Causes of the Inflation in Türkiye After the Covid-19 Pandemic and Strategies to Fight Inflation

Authors : Betül GÜR

Pages : 698-709

View : 268 | Download : 135

Publication Date : 2023-08-20

Article Type : Research Paper

Abstract :Inflation has been a significant macroeconomic issue at various times from past to present in Turkey. Although stability in inflation was achieved in the 2000s, recent years have seen a tendency towards destabilization and high inflation. This study aims to compare the causes of price instability in Türkiye before and after the Covid-19 pandemic, evaluate the measures taken to ensure price stability, and assess the success of these measures. The study also aims to compare the reasons for the inflation problem in Türkiye between past and present, and compare the national and international methods for fighting inflationary trends emerging after the pandemic. The results of the study show that expansionary monetary and fiscal policies, both globally and in Türkiye, have led to inflation after the Covid-19 pandemic. Therefore, the current inflation problem in the Turkish economy differs from the inflation problems of the past, which were caused by excess demand, inefficiency, or the financing of budget deficits. However, the policies adopted before the pandemic in Türkiye have increased inflationary tendencies even before the pandemic. The adoption of heterodox monetary policies for fighting inflation, contrary to the orthodox macroeconomic policies and strategies of other countries, has contributed to the continuing increase of inflation.
Keywords : Türkiye, Enflasyon, Faiz Oranı, Para Politikası, Covid 19