Vincent Boland: Erdoğan’s economic tinkering could bring Turkey to breaking point
It beggars belief that Turkey’s canny and populist leader is crippling his country’s economy by cutting interest rates in the midst of a currency crisis. And voters may finally have had enough of him
Imagine you are the boss of the central bank in a country where the annual rate of inflation is over 20 per cent, and the value of your national currency has collapsed against the currencies of your main trading partners in the past three months. Faced with a test of the credibility of your monetary policy, your reputation and your country, what would you do?
If you were an orthodox central banker, you would raise ...