The cost of imported goods is rising because of the falling
currency, which is causing inflation to rise. As the Turkish central bank is
determine to stabilize the currency the president Mr. Erdogan is desperate for
growth to increase since and election is approaching. There has been an ongoing
battle between the central bank and Erdogan because of contradicting views and
accusations, but the facts still show a declining currency due that may have
some influence of Mr. Erogan ideas.
4 comments:
I think the focus should be on stabilizing the currency rather than fulfilling political agendas.
At the same time a falling currency means that exports become more desirable, so maybe Turkey could focus there to make itself competitive in international markets.
I would agree that the country should focus on economic stability over political agendas or what will get the current president and his party the most success when the election comes around.
With a falling currency, the central bank should look to shrink the money supply in an effort to fend off inflation and look to strengthen the currency.
Additionally, I agree that because of the weakened currency, exports could have a strong or helpful role in stabilizing the Turkish currency.
I agree that Turkey should focus on exporting more goods, especially since imports are becoming more expensive. It will help their economy and currency.
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