The Intelligence from The Economist Quit it cold, Turkey: policy tightens at last
Nov 19, 2020
David Rennie, the Beijing bureau chief, sheds light on China's recent anti-poverty initiatives that aim to reshape citizens' mindsets rather than simply provide aid. He discusses the political implications of these strategies, which involve urbanization and the complex narratives surrounding propaganda tours. Rennie also touches on the cultural evolution of Pepe the Frog, exploring its transformation from a harmless character to a symbol associated with the alt-right, prompting reflections on how narratives can shift in the digital age.
AI Snips
Chapters
Transcript
Episode notes
Interest Rate Hike
- Turkey's central bank enacted its largest rate rise in two years, increasing the target interest rate by 4.75%.
- This move follows a period of soaring inflation and a sinking lira, caused by the central bank keeping rates low.
Family Dispute & Market Rally
- President Erdogan's dismissal of the central bank governor and the subsequent resignation of his son-in-law, Berat al-Bayrak, triggered positive market reactions.
- The lira saw its best performance in almost two decades following this family dispute.
Al-Bayrak's Economic Policies
- Berat al-Bayrak's policies, including forced credit handouts and burning through foreign currency reserves, significantly damaged the Turkish economy.
- The lira lost substantial value, and inflation remained stubbornly high under his leadership.