Macroeconomic Foundations of Financial Analysis

Despite the implementation of neoliberal policies since 1980, why is the Turkish economy still not a 'developed' economy? Why has the promised prosperity not arrived? Why is the unemployment rate obscenely high and income distribution so distorted? Why do we experience frequent crashes in the economy and why are the capital sources increasingly directed to the financial sector instead of the real sector? If the economy is growing, where is the wealth being channeled? This research is an attempt to demonstrate the incompatability of the neoclassically-inspired neoliberal model in theory and practice to the economic matters of modern Turkey. In an increasingly finance-centered economy, it is now more important than ever to rethink our economic paradigms and work on creating an economic model on the level of principles in order to bring about equitable income distribution and eliminate widespread unemployment. With these aims in mind, the author argues that the classical-Keynesian political economy is a more plausible theoretical alternative than neoliberalism and socialism. This work will provide an insight to the challenges in Turkish macroeconomic governance and showcase that classical-Keynesian answers are more fitting to answer Turkey's chronic economic problems for the present and the future.