T]he direct global spilloversfrom Turkey, withits Los Angeles-sized economy, wont be large,” Krugman writes. “But were hearing that dreaded word ‘contagion’ the kind of contagion that once caused a crisis in Thailand to spread across Asia, more recently caused a crisis in Greece to spread across Europe, and now, everyone worries, might cause Turkeys troubles to spread across the worlds emerging markets.” Krugman acknowledges Turkey’s economic “fundamentals” are “slightly reassuring,” but notes that previous financial crises “defied sanguine expectations.” Worse still, the award-winning economist writes that Turkey may be representative of a larger problem, one that’s global in scale. The...
http://www.salon.com/2014/01/31/krugman_will_the_next_global_financial_crisis_come_from_turkey/