Erdogan Sticks with Economic Policy as Turkey’s Inflation Rises, Currency Sinks
Turkey’s economy had a difficult year, with its currency depreciating and inflation skyrocketing. Experts warn that unless President Recep Tayyip Erdogan changes course and reverses his controversial monetary strategy, the situation could worsen.
Finance experts both inside and outside Turkey, as well as opposition parties, blame Erdogan’s insistence on continuing to cut interest rates.
Most economists believe to halt rising inflation, central banks should raise interest rates. But Erdogan has rejected that strategy, arguing that lower interest rates reduce inflation and encourage growth, despite mounting evidence his policy is not working.