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It's not even Idocracy at this point. Even President Camacho looked for help from smarter people. You don't adjust rates just because you want them to be lowe

by duxup 2y ago

It's not even Idocracy at this point. Even President Camacho looked for help from smarter people. You don't adjust rates just because you want them to be lower, there's second order effects. I'd like them to be lower all the time, but there's consequences for that. Trump is going to keep making policy based off snap judgments, listen to nobody, and just keep digging economic holes.

throw0101d 2y ago
> You don't adjust rates just because you want them to be lower, there's second order effects. You can… in Turkey (Türkiye); from 2021: > Erdogan is openly averse to high interest rates, claiming high rates cause inflation, which stands in opposition to mainstream economic theory. > He has pressured the central bank to keep rates low to fuel borrowing and growth. Critics say the independence of the central bank has been severely damaged through political pressure. > Erdogan’s decree on Saturday appoints Sahap Kavcioglu as the new central bank head. Kavcioglu is a banking professor and a columnist in a pro-government newspaper where he has argued for low interest rates. * https://www.aljazeera.com/news/2021/3/20/turkeys-erdogan-sacks-central-bank-governor-after-rate-hike https://www.aljazeera.com/news/2021/3/20/turkeys-erdogan-sac... More recently in 2024: > The first woman to lead the bank, Erkan began raising interest rates when she was appointed in June last year, launching a 180-degree pivot away from years of low rates under Erdogan that had sent inflation soaring and foreign investors fleeing. * https://www.aljazeera.com/news/2024/2/3/turkey-appoints-fatih-karahan-as-new-central-bank-chief-after-erkan-resigns https://www.aljazeera.com/news/2024/2/3/turkey-appoints-fati... In 2024 a court ruled that the President could not just fire central bank heads: * https://www.brecorder.com/news/40306881/turkey-court-loosens-erdogans-grip-on-central-bank https://www.brecorder.com/news/40306881/turkey-court-loosens...

by duxup 2y ago

throw0101d 2y ago

> You don't adjust rates just because you want them to be lower, there's second order effects. You can… in Turkey (Türkiye); from 2021: > Erdogan is openly averse to high interest rates, claiming high rates cause inflation, which stands in opposition to mainstream economic theory. > He has pressured the central bank to keep rates low to fuel borrowing and growth. Critics say the independence of the central bank has been severely damaged through political pressure. > Erdogan’s decree on Saturday appoints Sahap Kavcioglu as the new central bank head. Kavcioglu is a banking professor and a columnist in a pro-government newspaper where he has argued for low interest rates. * https://www.aljazeera.com/news/2021/3/20/turkeys-erdogan-sacks-central-bank-governor-after-rate-hike https://www.aljazeera.com/news/2021/3/20/turkeys-erdogan-sac... More recently in 2024: > The first woman to lead the bank, Erkan began raising interest rates when she was appointed in June last year, launching a 180-degree pivot away from years of low rates under Erdogan that had sent inflation soaring and foreign investors fleeing. * https://www.aljazeera.com/news/2024/2/3/turkey-appoints-fatih-karahan-as-new-central-bank-chief-after-erkan-resigns https://www.aljazeera.com/news/2024/2/3/turkey-appoints-fati... In 2024 a court ruled that the President could not just fire central bank heads: * https://www.brecorder.com/news/40306881/turkey-court-loosens-erdogans-grip-on-central-bank https://www.brecorder.com/news/40306881/turkey-court-loosens...