How the Turkish lira entered free fall under President Erdogan : The Indicator from Planet Money : NPR

More: Erdoganomics June 7, 20236:41 PM ET By  Wailin Wong Turkey's President Recep Tayyip Erdogan at Cankaya Palace after he was sworn in as President in Parliament in Ankara on June 3, 2023. Adem Altan/AFP via Getty Images What happens when you throw the conventional economics textbook out the window? We turn to Turkey to find out. Inflation in Turkey is currently around 40%. Unlike in the U.S., where the Federal Reserve has been raising interest rates in an effort to bring down inflation, Turkey has done the exact opposite and actually lowered their interest rates. As a result, people are struggling to afford daily essentials, and the Turkish lira has sunk to record lows against the U.S. dollar. How the Turkish lira entered free fall under President Erdogan : The Indicator from Planet Money : NPR