FİNANSAL KRİZLERİN ANATOMİSİ

Abstract

Financial crisis met not only in Latin American and Asian Countries but in Turkey as well require that this issue be investigated again. Capital flows are the exchange of the money in international fields. After Bretton Woods system collapsed in world economy, financial markets have gained more international character due to capital flows. During 1990's capital flows gained short term character. The most important cause of this is that systematic risk is high owing to potential balance of payments problems and currency risk which is present in most of the developing countries. The fact that systematic risk is high has caused the risk premium added to interest rates to be determined high. Those countries have become attractive investment fields for short term capital having a speculative structure. Short term capital flows are composed of exchange credits obtained from foreign markets by commercial banks and foreign time deposits accounts of foreigners and portfolio investments in stock markets. Financial liberalization arrangements having importance from the second half of 1980’s in the world economy have abolished the obstacles in front of capital flows. The main reason of financial crisis met in Turkey and in some developing countries in the 1990's is the liquidity scarcity resulting from sudden capital outflows of short term flows. Sudden decrease of capital flows resulted in net foreign asset losses in significant quantities in those countries. The primary aim of our study is to define the importance of "speculative attacks" in the formation of crisis. In our study, speculative attack case has been taken up and investigated in view offixedforeign exchange rate systems