Turkish bankers try to drag Erdogan toward monetary sanity to no avail – AEI – American Enterprise Institute: Freedom, Opportunity, Enterprise

According to an old proverb, whom the gods want to destroy they first make mad. Evidently, Recep Tayyip Erdogan, Turkey’s president, is blissfully unaware of this old warning.
Otherwise he would not be allowing his illusions of grandeur to lead him down the path of misguided economic policy decisions that could prove to be both the Turkish economy’s and his own ruin.
More than 10 years in power and with some economic success to his credit, Erdogan now seems to entertain the dangerous delusion that somehow Turkey is immune from the usual laws of economics.
One clear instance of Erdogan’s loss of touch with economic reality is his eccentric view on interest rates and inflation. He now entertains no doubt that high interest rates are the cause and not the consequence of high inflation.
Never mind that practically every central banker and every trained economist around the world would think that such a view

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