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AN EARLY WARNING SYSTEM FOR TURKEY: THE …

Asian Economic and Financial Review, 2014, 4(4):529-543 529 AN EARLY WARNING SYSTEM FOR TURKEY: THE FORECASTING OF ECONOMIC CRISIS BY USING THE ARTIFICIAL neural NETWORKS Fuat Sekmen Assoc, Prof. Dr., Sakarya University, Faculty of Economics and Administrative Sciences, Department of Economics, Adapazari/Turkey Murat Kurkcu at Sakarya University, Faculty of Economics and Administrative Sciences, Department of Economics, Adapazari/Turkey ABSTRACT An economic crisis is typically a rare kind of an event but it impedes monetary stability, fiscal stability, financial stability, price stability, and sustainable economic development when it appears. Economic crises have huge adverse effects on economic and social SYSTEM .

Asian Economic and Financial Review, 2014, 4(4):529-543 531 1990s (Fioramanti, 2008).1 Also, Swanson and White (1997) also concluded that artificial neural networks improve forecasts of macroeconomic variables. The objective of the present study is to determine whether the currency crises in Turkey were

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