Why Turkey Is Not Fixing It's Hyperinflation Problem
Economics Explained
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Turkey Is No Stranger to Inflation
Turkey is no stranger to inflation. In the 19 eighties and the 19 nineties, the country experienced inflation rate spikes as high as a hundred and forty %. The first spike was caused by the country loading up on foreign debt to fuel rapid growth during the 19 seventies. This caused the economy to effectively overheat while the government ran massive account deficets. After gaining this autonomy, the central bank went to work jacking up interest rates to 100% for a brief period in an attempt to stabilize inflation.
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