rana, turkey is not that large an economy, 80 million people, but turkey relies on short term debt and a lot of that is held by european banks, a lot of it by greek banks. exactly. if this free fall of the lira continues, turkey s debt is essentially doubling, what does that mean and what s the danger? you pointed out the right things, it s not a large economy. you could see a domino effect. this is part a bigger problem. we ve had ten years of easy money in the west, lower interest rates, and a lot of money flowed into emerging markets. there wasn t a lot of difference in terms of how people were perceiving risk. that s all changing now. u.s. interest rates are going up. we re at the end of that period of easy money. that s going to make it harder for anyone who is weak, turkey but a country like south africa,
and we are back with stephen cook, rana fula, and stephen moore. steve moore, as a free market person, you can t be happy to see donald trump talking so much about tariffs and levying so many tariffs, specifically urging certain businesses to be favored. this seems a very corporatist, mercantilist, protectionist approach to economics rather than the free trade stuff you ve been writing about for 20 years. when you re talking about a country that s protectionist and mercantilist, you re talking about china. for the last 25, 30 years, the united states has tried to nurture china along with a large and persistent trade deficit with them hoping this march toward free markets would lead to a good outcome. now we are in a situation where china is a richer country than they were, you know, clearly 25 years ago.
engineered a number of constitutional changes that have fundamentally altered turkey s political system, in which all the power flows to him. rana, turkey is not that large an economy, 80 million people, but turkey realizes on short term debt and a lot of that is held by european banks, a lot of it by greek banks. exactly. if this free fall of the lira continues, turkey s debt is essentially doubling, what does that mean and what s the danger? you pointed out the right things, it s not a large economy. you could see a domino effect. this is part a bigger problem. we ve had ten years of easy money in the west, lower interest rates, and a lot of money flowed into emerging markets. there wasn t a lot of difference in terms of how people were perceiving risk. that s all changing now. u.s. interest rates are going
turkey. and a tit for tat followed. the lira has seemed to be in free fall at times, raising concerns about the stability of this nation of 80 million people. turkey is a member of nato, hoest of an important american air base, and it sits as an important buffer between europe and the middle east. so is an unstable turkey what the world needs right now and are economics america s favorite new weapon? joining me now, stephen cook is a senior fellow at the council of foreign relations. rana fula is cnn s global economic analyst. stephen moore was a top economic adviser to donald trump s 2016 campaign. he is a senior economics analyst for cnn. steve cook, let me begin by asking you to help us understand what is happening in turkey, because this is one of closest alliances the united states has had geopolitically for 60 years,
freefall at times, raising concerns about the stability of this nation of 80 million people. turkey is a member of nato, host of an important american air base, and it sits as an important buffer between europe and the middle east. so is an unstable turkey what the world needs right now and are economics america s favorite new weapon? joining me now, stephen cook is a senior fellow at the council of foreign relations. rana fula is cnn s global economic analyst. stephen moore was a top economic adviser to donald trump s 2016 campaign. he is a senior economics analyst for cnn. steve cook, let me begin by asking you to help us understand what is happening in turkey, because this is one of closest alliances the united states has had geopolitically for 60 years, and it feels like it s sort of over. in ways, the relationship between the united states and