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Saturday, August 11, 2018

Turkey's lira crisis may be down to Erdogan's fundamental misunderstanding of how 'evil' interest rates work

Turkey’s lira crisis may be down to Erdogan’s fundamental misunderstanding of how ‘evil’ interest rates work

LONDON – Turkey’s economy went from being rocky-but-fixable into a full-blown currency crisis today as the Turkish lira collapsed, losing more than 7% of its value against the US dollar on Friday, totaling a drop of over 35% since the same date last year. The crisis may potentially spread beyond Turkey, as Italy’s already troubled banks are particularly exposed to the lira.

More:Turkey's lira crisis may be down to Erdogan's fundamental misunderstanding of how 'evil' interest rates work