BORÇ DEFLASYONU: TEORİNİN GELİŞİMİ VE AVRUPA'DA BORÇ DEFLASYONUNA İLİŞKİN DEĞERLENDİRMELER.

Debt deflation which includes over-indebtedness and deflation vicious circle means that over-indebtedness in private sector causes asset sales, monetary contraction and deterioration in financial sector and so demand shrinking and aggravates deflation process. Debt deflation is an outcome of expansion, globalization and deregulation of financial system. As a result of increasing deregulation of financial system, increasing number of financial crises started to increase the possibility of debt deflation process. Debt deflation first theorized during the Great Depression of 1929. But it has attracted attention recently in company with the crises. And one of these crises is European Debt Crisis which contains debt deflation dynamics nowadays. The aim of this study is to evaluate the debt deflation, worries about it and its possibility in the Euro Area peripheral countries which has been getting hit by European Debt Crisis. Consequently, it can be said that in these countries there has been occurring some debt deflation dynamics but they are not strong enough. So, there isn't a clear and strong debt deflation process nowadays. But, in order to prevent debt deflation process in these countries, it is essential to ease the consolidation measures and to continue expansionary and restorative monetary policies. [ABSTRACT FROM AUTHOR]