ANALYZING THE EFFECTS OF NEGATIVE INTEREST RATE FOR TURKEY

Negative interest rate which has gained importance in the global economy, particularly in the us and the eu, has been seen as a solution to stimulate the economy , protect the value of the national currency and achieve a certain growth by keeping the level of inflation at 2% . in this study, the relationship of the application of negative interest rate with macroeconomic parameters has been studied by investigating the effects of negative interest rate in advanced economies. the main purpose of the study is evaluating the topic of whether negative interest rate can be applied in turkey or not and suggestions are given about this issue. in conclusion, negative interst rate causes the escaping of foreign investment to other countries which have high interst rate and problems for the financing of current acoount deficit in the developing countries like turkey.