A change in the country’s economic policy could reverse what several economists argue has been an unsustainable and reckless course.
The president has repeatedly flouted conventional economic wisdom by maintaining that high interest rates fuel inflation.
Most economists argue the opposite: Higher interest rates makes borrowing more expensive, which slows down investment and spending and, in turn, reins in price increases.
When central bankers resisted pressure to lower interest rates, Mr. Erdogan fired them.
That is why the government did everything it could to protect the lira’s value before the presidential election, Mr. Tastan said.
Persons:
Mr, Erdogan, Goldman Sachs, Kadri Tastan, Tastan, “, ”
Organizations:
German Marshall Fund
Locations:
Turkey, Brussels