A cut-rate theory: Turkey’s currency spiral
The Intelligence from The Economist
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The Central Bank Is Just Doing His Bidding
The central bank has slashed interest rates by accumulative four per centage points since september to 15 %. The charitable explanation for this is that mister edwan would like to keep the lura exchange rate competitive, to keep the lyra weak. But economists will tell you that even at negative real interest rates, investors are going to hesitate to take out loans because the market situation heconomy is simply too volatile.
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