Turkey's Economic Problems and Solutions: A small open economy approach

Hosted by the European Institute, Systemic Risk Centre and Contemporary Turkish Studies

Online event


Şebnem Kalemli-Özcan

Şebnem Kalemli-Özcan

Professor, University of Maryland


Yaprak Gürsoy

Yaprak Gürsoy

Professor of European Politics and Chair of Contemporary Turkish Studies at LSE


Turkey’s economic problems are all rooted in International economics 101. All standard textbook problems with easy and straightforward solutions known by many emerging countries and applied successfully since early 2000s. Why then these problems persist in Turkey?

The answer is very simple. There is no economic policy in Turkey, there is no management of the economy. In fact, there is extensive mis-management. The talk will go over the problems, explain why they get worse, how they can be solved and how academic research studying small open economies and emerging markets and their problems such as low productivity and growth, high inflation, volatile exchange rates and capital flows, is the only solution. 

Meet the speaker and chair

Şebnem Kalemli Özcan is Neil Moskowitz Endowed Professor of Economics at University of Maryland, College Park. She is a Research Associate at the National Bureau of Economic Research (NBER) and a Research Fellow at the Center for Economic Policy Research (CEPR). Currently, she is the co-editor of American Economic Journal: Macroeconomics and serves at the editorial board of American Economic Review. She also serves at the economic advisory panels of the NY Federal Reserve and the Bank of International Settlements. She was the Duisenberg Fellow at the European Central Bank in 2008 and held a position as Lead Economist/Adviser for the Middle East and North Africa Region at the World Bank during 2010-2011. She was the Houblon-Norman Fellow of Bank of England and CFR International Affairs Fellow during 2017-2018. She served as the Senior Policy Advisor and Assistant Director at the International Monetary Fund during 2019-2020. She is the first Turkish social scientist who has received the Marie Curie IRG prize in 2008 for her research on European financial integration. Her research focuses on capital flows, macroeconomic fluctuations, and financial frictions, using big data on global firms and banks. Currently, she works on the impact of COVID pandemic on supply chain bottlenecks, business failures and inflation.

Yaprak Gürsoy (@ygursoy) is Professor and Chair of Contemporary Turkish Studies at LSE. Her research interests include regime change, democratisation, and emotions and memory in European politics and collective identity. She is the author of Between Military Rule and Democracy: Regime Consolidation in Greece, Turkey and Beyond.


This event is a part of the 4th LSE Workshop on Political Economy of Turkey, which aims to provide a platform for researchers and policymakers to discuss new research on the Political Economy of Turkey.

Please click here to access and download the program for our upcoming workshop.


More about this event

The LSE European Institute (@LSEEI) is a centre for research and graduate teaching on the processes of integration and fragmentation within Europe. In the most recent national Research Excellence Framework (REF 2014) the Institute was ranked first for research in its sector.

The Systemic Risk Centre (SRC) was set up to study the risks that may trigger the next financial crisis and to develop tools to help policymakers and financial institutions become better prepared. 

Contemporary Turkish Studies focuses on the politics and economy of Türkiye and its relations with the rest of Europe. The research group aims to promote a deeper understanding of contemporary Türkiye through interdisciplinary and critical research, teaching and related public activities.

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