Turkey's Lira Decline - Rooting Out The Speculators Isn't The Solution, Gentlemen
Tim Worstall ,
This is not an unusual occurrence, something appears to go wrong with an economy and the government then insists that it's all the speculators' fault. Thus the solution is to root out the speculators and everything will be fine. Except, of course, this is not entirely nor absolutely what is happening. Speculation does indeed of course exist, as do speculators. But speculators who manage to make money (and the other kind, those who lose it, rapidly leave the market through being bankrupt) act upon some underlying thing which is going wrong with an economy. They are a symptom, not a cause.
And so it is with the recent complaints in Turkey:
Everyone already sees and knows the attacks that Turkey has been subjected to also have an economic aspect. There is no difference between a terrorist who has a weapon or bomb in his hand and a terrorist who has dollars, euros and interest in terms of aim. The aim is to bring Turkey to its knees, to take over Turkey and to distance Turkey from its goals. They are using the foreign exchange rate as a weapon,” Erdoğan said at his 34th meeting with village chiefs at the Presidential Palace in Ankara.
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