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The stories of Turkey and Argentina need to be viewed from three different perspectives to better understand the causes and trajectory of the crises experienced by the two countries: 1.The long term development path. 2.The major economic imbalances behind the crises  3.The actions of the policy makers before, during and after the crises. This article focuses on the first point, long term development, and attempts to link it to the other two. Main conclusions are that 1. economic stability in the medium term is dependent on the maintenance of the two major resource flow balances of a country - the fiscal position and the current account position, 2. a credible and rational mechanism must be in place to manage the resource allocation question and 3. when it is time to "pay the bill", delays only increase the damage.

 
CONTRIBUTOR
Ümit Kumcuoğlu
Ümit Kumcuoğlu
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Yapı Kredi
Foreword After the violent dissolution of the former Yugoslavia in the 1990s, there had been a shared sense of hope for a more peaceful future for the European continent. Unfortunately, this comfortability disappeared after Russian President Vladimir Putin ordered his troops to march against the Ukrainian forces throughout the border on 24 February 2022. This marked a turning point not only for the region...
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