Examining the value of money in turkey over the long term (1469-2009)
This paper aims to examine the tremendous loss of value of money over the long term during the Ottoman Empire and the Republic of Turkey between 1469-2009. By 1844, 1.1 Ottoman lira exchanged for one English pound, but in 2005, 1.5 million Turkish lira exchanged for one U.S. dollar. By critically...
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| Format: | Article |
| Language: | English |
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Canadian Center of Science and Education
2013
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| Online Access: | http://irep.iium.edu.my/44665/ http://irep.iium.edu.my/44665/ http://irep.iium.edu.my/44665/ http://irep.iium.edu.my/44665/1/Abdullah%2C_13-12%2C_Turkey.pdf |
| Summary: | This paper aims to examine the tremendous loss of value of money over the long term during the Ottoman
Empire and the Republic of Turkey between 1469-2009. By 1844, 1.1 Ottoman lira exchanged for one English
pound, but in 2005, 1.5 million Turkish lira exchanged for one U.S. dollar. By critically examining the value and
purchasing power of money in Ottoman-Turkey, this paper compares empirical evidence and statistics through
long term analysis of silver and commodity price indices, as to which medium of exchange provides for the best
store of value. This paper discovers that monetary policy should not target stable prices, by managing the
quantity or purchasing power of money, but instead adopt a monetary theory of value involving a stable currency,
free of monetary management, permitting a stable purchasing power and thus stable prices. |
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