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
