Follow
Jun. 3, 2021
For economists, Turkish President Recep Tayyip Erdogan has become something of a running joke. Stubbornly defying conventional economic wisdom and the experience of the Turkish economy, he has long insisted that high interest rates cause inflation and as a rule, has put his words into action.
There was a brief moment in November when many hoped that the Turkish leader was finally bowing to reality.
He fired his son-in-law/finance minister and the central bank government and vowed uncompromising structural reforms. But this week Erdogan was back in interest rate la-la land, declaring that a rate cut was “imperative” sometime this summer.
Get email notification for articles from David Rosenberg
Follow
Jun. 3, 2021 3:46 PM
For economists, Turkish President Recep Tayyip Erdogan has become something of a running joke. Stubbornly defying conventional economic wisdom and the experience of the Turkish economy, he has long insisted that high interest rates cause inflation and as a rule, has put his words into action.
There was a brief moment in November when many hoped that the Turkish leader was finally bowing to reality.
He fired his son-in-law/finance minister and the central bank government and vowed uncompromising structural reforms. But this week Erdogan was back in interest rate la-la land, declaring that a rate cut was “imperative” sometime this summer.