Posted on 08/19/2022 3:43:53 AM PDT by EBH
ANKARA, Turkey (AP) — Turkey’s central bank on Thursday lowered its key interest rate despite inflation surging to nearly 80% and making it difficult for people to buy what they need, falling in line with the unorthodox economic views of the country’s president.
In a statement following a monetary policy committee meeting, the bank said it decided to reduce the policy rate from 14% to 13%.
President Recep Tayyip Erdogan has pressured the bank into lowering borrowing costs in a bid to boost economic growth, investment and exports, insisting that interest rate hikes cause inflation. That contradicts established economic thinking, with rate increases the traditional tool to target inflation.
Central banks worldwide are raising interest rates as rising food and energy prices drive inflation to decades-high levels. Even then, inflation figures in the U.S. of 8.5%, the United Kingdom of 10.1% and the 19-country euro area of 8.9% come nowhere close to Turkey’s eye-popping rate of nearly 80%, with skyrocketing food, housing and energy prices hitting people hard.
(Excerpt) Read more at apnews.com ...
Muzzie economics 101. Currency should go to 0 shortly.
Wait. Aren’t they called Turkyease now?
And keep on printing that paper money. What could go wrong.
Erdogan election year gimmick.
Looks like the whole world is spinning around before going down the hole.
Things fall apart.
All over the world, governments are taking exactly the wrong steps to curb inflation. First, stop printing more fiat currency, or in the case of electronic wealth transfers, stop expanding the extended credit. Then, stop spending on all but the most essential things, to keep the lights on and maintain the ready exercise of commerce to feed and house the population. The “ready exercise of commerce” does NOT mean putting people on the dole, but removing restrictions on means to exchange or make goods, by hand if necessary, and by the individual efforts to obtain those goods and services.
Do people no longer understand the need for and meaning of austerity? Tomorrow comes, whether you are ready or not.
“Use it up, wear it out, make it do, or do without.”
Erdogan desires to be the leader of The Islamic group of States.
At about this time he has renewed relations with Israel, which I learned from CBN ie Christian Broadcasting Network.
Which I guess makes him part of the Abraham accords.
Purely a political move which should be good for Turkey’s monetary problems.
He desires to rebuild The Ottoman Empire.
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