Economist Podcasts A cut-rate theory: Turkey’s currency spiral
Nov 26, 2021
Join Piotr Zalewski, The Economist’s Turkey correspondent, as he unpacks the turmoil in Turkey fueled by President Erdogan's radical economic policies. Sarah Burke sheds light on the political tensions in Honduras ahead of a critical election, exploring historical unrest and army involvement. Anne Rowe shares the inspiring story of Rossana Banti, a fearless anti-fascist whose secret missions during the Nazi occupation highlight resilience and bravery. These compelling narratives showcase the intertwining of economics, politics, and human spirit.
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Impact of Lower Interest Rates
- Erdogan's insistence on lower interest rates, despite high inflation, has fueled the lira's decline.
- This makes exports cheaper but imports more expensive, impacting Turkish citizens.
Lira's Devaluation
- The lira has lost nearly 40% of its value against the dollar since the start of the year.
- This makes Turkish exports cheaper for outsiders, but imports much more expensive.
Economic Hardship
- Many Turks, including blue-collar workers, students, and pensioners, struggle to afford basic necessities like meat.
- A retired nurse shared her experience of going to bed hungry due to economic hardship.