3 ms·
I did. One of the primary causes of inflation is running a deficit for decades which is financed by the money printer. As a consequence, the demand for Turkish
by aeyes 3y ago
I did. One of the primary causes of inflation is running a deficit for decades which is financed by the money printer.
As a consequence, the demand for Turkish debt is decreasing because it is getting riskier and riskier. And with this the value of the lira is going down because there is lower and lower genuine demand for the currency. And when the value of the currency goes towards 0, the prices are going towards: infinity.
Why do you think the government is trying to stop dollarization? Nobody wants lira.
Japan is an outlier and I wouldn't cite it as a general example because it is the only example. But there are hundreds of examples of inflation caused by expanding money supply.