Turkish President Recep Tayyip Erdogan today denounced a “rather high” interest rate hike by Turkey’s Central Bank. “Here you go with independence. I am in a stage of patience at present but this patience has limits,” Erdogan said at a meeting of his Justice and Development Party. On Thursday, the Central Bank hiked its policy rate by 625 points to prop up the embattled Turkish lira. Hours before Erdogan spoke, Finance Minister Berat Albayrak, the president’s son-in-law, had said that the rate hike had put an end to the debate over whether the Central Bank was truly independent. Read More
BY ALISON TAHMIZIAN MEUSE
The move to steady the economy is imposed despite longstanding opposition from President Erdogan
Desmond Lachman | Official Monetary and Financial Institutions Forum
Emerging markets account for more than half of world economic output and have been the main engine of global economic growth. The repercussions of the Turkish economic crisis provide ample forewarning. By ignoring the plight of emerging markets, the US is steering a perilous course.
BY DAVID P. GOLDMAN
On the contrary, investors are taking each market on its own merit
(Asia Nikkei Review) Turkey's currency crisis is adding to the financial troubles of emerging Asian economies that have taken big loans for infrastructure projects under China's Belt and Road initiative.
Jim O'Neill shows that the currency crisis is long overdue, and expects sober minds ultimately to prevail.
Nina Khrushcheva argues that the Turkish president's bizarre theories provide some fundamental insight into dictatorship.
Mohamed El-Erian hopes the government reverses its rejection of interest-rate hikes and IMF support before it's too late.