The first objective of this study is to give a critical account of debt sustainability and solvability. Based on the case of Turkey we show that debt, rather than being a transitory phenomenon is a self-sustained process. The second objective of the study entails the measurement of the social costs of debt sustainability, and calculating a new indicator for Turkey's debt sustainability. The results show that the debt sustainability indicator based on the narrow definition adopted by market actors and international institutions, and the alternative indicator that takes into account social costs move in opposite directions.
Key words: Sustainability, debt, finance, persistence, crises, Turkey. JEL Classification: F59, H63, H68. Article Language: EnglishTurkish
|
