摘要
The paper aims to investigate the current account imbalances in the context of an overview of macroeconomic fundamentals after the liberalization process in Turkey. Two main questions discussed here are： （1） What is the link between liberalization and current account imbalances; （2） What kind of mechanisms ensured this link to become a vicious circle. The period after 1989, Turkey was characterized by significant fluctuations in macroeconomic activity by the implementation of liberalization policies. Once financial liberalization is adopted, Turkey faced with a new challenge： large current account deficits. On the other hand, foreign capital inflows aggravated a lending boom. Because of excessive risk taken by banks, interest rates began to rise. As mentioned above, the paper studies Turkey＇s liberalization process with a number of indicators that point to a fragility of the external balance： unhealthy structure of financial sector, particularly banking sector, large fiscal imbalances, low savings and investment rates, unstable GDP growth. Domestic structural features combining with macroeconomic policy stance and political factors are examined as well
