Erdogan’s Obsession With Low Interest Rates Could Be His Downfall

Erdogan’s Obsession With Low Interest Rates Could Be His Downfall
Turkish President Recep Tayyip Erdogan listens during a joint news conference with German Chancellor Angela Merkel in Istanbul, Turkey, Oct. 16, 2021 (AP photo by Francisco Seco).

It’s never a good sign for a country’s leader when fluctuations in the value of the national currency become a dominant concern for everyday people. That is the case today in Turkey, where President Recep Tayyip Erdogan is taking a huge gamble with his monetary policy, setting a controversial interest rate policy that runs contrary to firmly established economic theory and has caused the local currency, the lira, to nosedive. Slashing the value of savings, spooking investors and further fueling inflation, the policy is already causing significant hardships for the Turkish people, who polls show have lost faith in the […]

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