The Intelligence from The Economist You bet your dollar-bottomed: Erdogan’s next gambit
Dec 28, 2021
Piotr Zalewski, The Economist's Turkey correspondent, delves into President Erdogan's controversial monetary policies aimed at saving the lira, which put the Turkish taxpayer in a precarious position. Meanwhile, Tom Rowley discusses the fascinating insights from the Mass Observation Project, highlighting everyday challenges faced by British citizens. The podcast also touches on Saudi Arabia's massive leap into the film industry, showcasing the drastic cultural shifts as it moves from a cinema ban to nurturing an international film hub.
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Shifting Risk
- Erdogan's plan temporarily stabilized the lira but shifted the risk from depositors to taxpayers.
- The central bank sold billions to prop up the lira, raising sustainability concerns.
Impact of Inflation on Turkish Citizens
- A chef stocked up on diapers due to rising prices, illustrating the impact of inflation on Turkish citizens.
- Millions of Turks are struggling to meet basic needs, and the middle class is shrinking.
Long-Term Economic Outlook for Turkey
- Erdogan's short-term solutions may worsen Turkey's economic woes, particularly inflation.
- Analysts predict inflation will reach 30-50% in 2022 due to minimum wage increases and Erdogan's policies.