The Ottoman dissolution and the İstanbul bourse between war and peace: a foreign exchange market perspective on the Great War |
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| Authors: | Avni Önder Hanedar Hatice Gaye Gencer Sercan Demiralay İsmail Altay |
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| Institution: | 1. Faculty of Political Sciences, Sakarya University, Sakarya, Turkey;2. Faculty of Economics and Administrative Sciences, Yeditepe University, ?stanbul, Turkey;3. International Faculty of University of Sheffield, CITY College, Thessaloniki, Greece;4. Faculty of Economics and Administrative Sciences, Recep Tayyip Erdo?an University, Rize, Turkey |
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| Abstract: | The participation of the Ottoman Empire in the First World War caused economic disruptions, huge budget deficits, surmounted inflation rates and excessive depreciation of Lira, the Ottoman currency. Based on the value of Lira against the currencies of Switzerland, Netherlands, Sweden that were not in the war, we focus on the effects of news about the war on the foreign exchange rates at the ?stanbul bourse from 1918 to 1919. Our results signify some dates, which match the announcements of the armistices and peace meetings, heralding continuous depreciation of Lira. Thus, the findings support the presence of an expectation on the dissolution of the Ottoman Empire with the peace, marked by the escalation of the loss in trust for the Lira and the power of the state in foreign exchange interventions. |
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| Keywords: | The ?stanbul bourse foreign exchange trading the First World War the armistices economic recovery |
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