5 ms·
erdogan selfappointed himself as central bank manager, do not undermine the work of the actual experts
by kwere 5y ago
erdogan selfappointed himself as central bank manager, do not undermine the work of the actual experts
- imtringued 5y agoYeah, Turkey is pretty much a go to case for "Don't trust the government, trust the central bank". What Erdogan should do is to support the agriculture sector and help it provide enough food for everyone. By forcibly lowering interest rates he is actually cutting off financing for the most productive companies. High interest rates are supposed to drive out unproductive companies and make it harder for them to acquire financing. If the agriculture sector is highly productive (indicated by rising food prices) then it will automatically obtain more funding and other companies will have to downsize, which makes more resources and workers available to agriculture companies.