The Intelligence from The Economist Can’t take a hike: more economic turmoil in Turkey
Mar 24, 2021
Piotr Zalewski, The Economist's Turkey correspondent, shares his insights on Turkey's volatile economy under President Erdogan. He discusses the recent dismissal of the central bank governor and its detrimental effects on the lira and market confidence. With high inflation looming, the risk of a currency crisis is palpable. The conversation also shifts to the unregulated sperm donation market in the U.S., tackling the implications of anonymity and the need for greater oversight. Furthermore, the dialogue touches on contemporary women in opera, reshaping narratives in a traditionally male-dominated field.
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Erdogan's Central Bank Shake-Up
- Turkey's President Erdogan fired the central bank head again, causing the lira to plummet.
- This is the third central bank head dismissal in two years, raising concerns about a currency crisis.
Ağbal's Brief Tenure
- The previous governor, Naci Ağbal, stabilized the lira and lowered inflation by raising interest rates.
- This pleased investors, but clashed with Erdogan's unconventional economic beliefs.
Erdogan's Economic Views
- Erdogan opposes high interest rates, believing they cause inflation, contrary to conventional economics.
- Central bank governors who raise rates are often dismissed by Erdogan.