4 ms·

this is just an object offset to rate hikes. prior to this, Erdogan was of the belief that raising interest rates caused inflation which is absolutely not how

this is just an object offset to rate hikes. prior to this, Erdogan was of the belief that raising interest rates caused inflation which is absolutely not how anyone economically minded thinks. America s fed also thinks unemployment is inversely related to inflation suggesting this act might be trying to increase unemployment. overall, given turkeys unusual economic beliefs, it's unlikely this will be the last unusual lever to stabilize. I really doubt Erdogan has changed his ego or beliefs and that this signals a return to economic prudence.

alephnerd 3y ago
> Erdogan was of the belief that raising interest rates caused inflation As I mentioned before, that was an excuse he used because his family has a controlling stake in the construction industry in Turkiye, not Islamic beliefs. Low interest rates help offset the massive construction bill racked up in the 2000s and early 2010s He's been in power in 2004 btw. He followed through on implementing the IMF reform plan that made Turkiye a country on the precipice of becoming a developed country, and then also exacerbated the current economic crisis From the looks of it, the AKP is going back to using the IMF playbook used to make it an Anatolian Tiger in the 2000s.