Contrary to most economists, President Erdoğan has long believed that raising interest rates increases inflation.
President Recep Erdogan and independent central banks are not compatible.
It’s two years since Turkey’s last near-death experience, and the same short-term fixes are unlikely to work again.
US sanctions announced earlier this month may have triggered the plunge in the lira, but the government has been mismanaging Turkey’s economy for years, creating severe vulnerabilities.
What looks from the outside like a domestic currency crash is in fact something far more dangerous.