Turkey’s lira crisis may be down to Erdogan’s fundamental misunderstanding of how ‘evil’ interest rates work
|08/10/2018||Posted by BusinessMediaguide.Com under General World News||
- The Turkish lira collapsed by over 35% in value versus the US dollar this year — a dramatic and sudden fall.
- Yet the Turkish economy is growing strongly.
- The trigger for the crisis may be investors’ realisation that President Recep Tayyip Erdogan doesn’t understand, or doesn’t believe in, the role central banks play in setting interest rates that control inflation.
- Erdogan has called interest rates “evil” in the past, and it’s an attitude that may be spooking markets.
LONDON — Turkey’s economy went from being rocky-but-fixable into a full-blown currency crisis today as the Turkish lira collapsed, losing more than 7% read more >>>