@article{2017,title={OPTIMIZATION OF SHORT TERM CAPITAL FLOWS IN DEVELOPING COUNTRIES},abstractNode={Capital accumulation and foreign capital inflows are essential for all Countries which aim economic growth and development. In addition to that, investors send their savings to other countries for more yields. Financial Liberalization have triggered huge capital flows towards developing countries. It was often stressed in the literature that these capital movements might be helpful in financing domestic investments, increasing economic growth and standard of living. However these capital inflows might cause financial crisis originating from rapid monetary expension, fueled inflation and real exchange rate appreciation. The aim of this paper is to optimize short term capital inflows to Turkey by using transition matrix. As a result of the analysis a decision matrix has been obtained. According to the analysis Turkey has disadvantage against other countries in terms of inflation rate and exchange rate but has advantage in terms of interest rate.},author={Özhan TUNCAY-- Didem BARAN},year={2017},journal={Kesit Akademi}}