Erdogan’s economic policy goes beyond just bad into the realm of phenomenally stupid. This is a guy who was cutting interest rates to fight inflation, the equivalent of fighting a fire with gasoline. Europe will have its struggles, but they’re not horribly mismanaged like Turkey.
The European central bank has forecast that it plans on upping rates soon. Its rates are also effectively much higher than Turkey’s, once you factor inflation in.
They’re higher than Turkey, mostly because Turkey’s interest rate is set significantly below inflation. There’s also the future: Europe will raise its rates, while Erdogan shows every sign of sticking to his “untraditional” path.
Eurozone rate is also below inflation. So far there is no concrete indication that the rates will be going up. Given that raising interest rates hurts asset holders first and foremost, I wouldn’t hold my breath this will happen to any significant extent either in Europe or US.
So far there is no concrete indication that the rates will be going up.
The European Central Bank has explicitly stated that it will start moving interest rates up this month in response to inflation. The Fed has raised their rates fairly substantially. They have to be careful because an overreaction can do more harm than good.
You have an interesting definition of what the word substantial means. Substantial raise in rates was what Russia did, and that stabilized the economy. The west is just letting the inflation run wild, and the longer that goes the worse things will get.
Erdogan’s economic policy goes beyond just bad into the realm of phenomenally stupid. This is a guy who was cutting interest rates to fight inflation, the equivalent of fighting a fire with gasoline. Europe will have its struggles, but they’re not horribly mismanaged like Turkey.
Go look at what interest rates across eurozone right now, I’m not seeing much difference there.
The European central bank has forecast that it plans on upping rates soon. Its rates are also effectively much higher than Turkey’s, once you factor inflation in.
Buddy, Europe has been running a policy of zero and in some cases even negative interest rates. Not sure where you think these high rates are exactly.
They’re higher than Turkey, mostly because Turkey’s interest rate is set significantly below inflation. There’s also the future: Europe will raise its rates, while Erdogan shows every sign of sticking to his “untraditional” path.
Eurozone rate is also below inflation. So far there is no concrete indication that the rates will be going up. Given that raising interest rates hurts asset holders first and foremost, I wouldn’t hold my breath this will happen to any significant extent either in Europe or US.
The European Central Bank has explicitly stated that it will start moving interest rates up this month in response to inflation. The Fed has raised their rates fairly substantially. They have to be careful because an overreaction can do more harm than good.
Didnt they raise interest to around 1 or 2 percent? That wont change anything with inflation around 10%.
You have an interesting definition of what the word substantial means. Substantial raise in rates was what Russia did, and that stabilized the economy. The west is just letting the inflation run wild, and the longer that goes the worse things will get.