In this paper, the effects of the foreign debts on the economic growth and the inflation in Turkey have been examined for the period of 1950-1992. The theoretical framework has been investigated and the alternative ideas have been discussed. Then, the empirical analyses have been conducted to determine the relationship between growth, debts and inflation by using the Granger Causality Tes ts. The results imply that the total foreign debts of Turkey have an negative effect on growth and a positive effect on inflation.
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