Question

On December 31 last year, China alerted The Who to several cases of unusual pneumonia in Wuhan, a city of 11 million people. The virus was unknown. Several of those infected worked at the city's Huanan Seafood Wholesale Market, which was shut down on January 1. As health experts worked to identify the virus amid growing alarm, today, more than 8.5 million coronavirus cases confirmed worldwide, with at least 450,000 deaths and 4 million recoveries. The disease was confirmed to have reached Turkey on 11 March 2020, after a man who had returned to Turkey from Europe, tested positive.

As many countries and world capitals have been put under strict lockdown, major industrial production chains have been brought to a halt. Governments around the world have urged employees to work from home where possible. The travel industry has been badly damaged, with airlines cutting flights and observed that the health crisis gradually turned into an economic crisis
After this short reminder at the top; write an essay discussing the economic impacts of the show in Turkey's economy. In your article, discuss the effects of this economic shock on Turkish economy using the concepts of GDP, growth, inflation, unemployment, money markets, interest rates, aggregate supply and aggregate demand. Use a narrative based on the economic theories we saw in the course. Connect your ideas each other with a scientific background. Give policy suggestions to shorten the effect of this shock on Turkish economy. While giving the policies keep in mind and state the constraints that the Turkish economy currently facing.

Answer 1

Turkeys economy has faced wide issues like low credit availability, high unemployment, low disposable incones, low consumption and spending, falling aggregate demand and subsequently fall in real GDP and Inflation.

Moreover, this has propelled central bank to adopt expansionary monetary policy by reducing interest rates, declin ein CRR and SLR and liquidity coverage ratio cuts. Government too has been compelled to indulge in higher government spending and lower taxes and run automotic stabilizers to boost the economy from shock and recession.

However Turkey faces huge political instability and terrorism like situation coupled with global uncertainty which would make implementation of above policies a big task.