{"id":35880,"date":"2018-07-11T06:59:15","date_gmt":"2018-07-11T11:59:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35880"},"modified":"2018-07-11T06:59:15","modified_gmt":"2018-07-11T11:59:15","slug":"spotlight-turkey-hyperinflation-and-mass-migration-crisis-inevitable","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35880","title":{"rendered":"Spotlight Turkey: Hyperinflation and Mass-Migration Crisis Inevitable"},"content":{"rendered":"
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Spotlight Turkey: Hyperinflation and Mass-Migration Crisis Inevitable<\/a><\/h3>\n<\/div>\n
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Turkey isn’t close to hyperinflation yet. But the path it’s on is a guaranteed way to get there.<\/p>\n<\/section>\n<\/div>\n<\/header>\n
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As Erdogan tightens his grip on finance and the central bank, Investors Fear Turkish Currency Crisis<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Turkish lira fell around 4% against the dollar late Monday after Mr. Erdogan appointed his son-in-law as finance minister and put in place measures that could curb the independence of the country\u2019s central bank. Investors also sold Turkish shares and debt, with yields on its dollar bond maturing in October 2028 rising from around 6.8% last week to about 7.15% recently, according to Tradeweb. Yields rise as prices fall.<\/p>\n

\u201cThere\u2019s a real risk that this spirals into a full-blown currency crisis,\u201d said Paul McNamara, a portfolio manager at GAM Holding . \u201cIt\u2019s got so many red flags that we\u2019ve associated with economic crises\u2026in the past.\u201d<\/p>\n

In such a crisis, a sharp slide in a currency threatens the government and local companies\u2019 ability to pay foreign debt. Turkey has one of the highest levels of external debt for a developing country, at 53.4% of gross domestic product, according to data from the International Monetary Fund. Local companies have raised billions of dollars, leaving them and the wider economy vulnerable to a slide in the lira, which would make paying off that debt more expensive.<\/p>\n

The lira has lost a fifth of its value this year as investors sold ahead of Mr. Erdogan\u2019s June re-election, concerned he would erode the central bank\u2019s independence and usher in looser monetary and fiscal policies. Mr. Erdogan has described high interest rates as \u201cthe mother and father of all evils,\u201d stoking fears that his preference for lower rates could prevent the central bank from supporting the currency and tackling inflationary pressure.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Spotlight Turkey: Hyperinflation and Mass-Migration Crisis Inevitable Turkey isn’t close to hyperinflation yet. But the path it’s on is a guaranteed way to get there. As Erdogan tightens his grip on finance and the central bank, Investors Fear Turkish Currency Crisis. The Turkish lira fell around 4% against the dollar late Monday after Mr. Erdogan […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[122,1976,195,1731,426,1908,818],"class_list":["post-35880","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-bank","tag-currency-crisis","tag-debt","tag-foreign-debt","tag-inflation","tag-recep-tayyip-erdogan","tag-turkey"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35880"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35880\/revisions"}],"predecessor-version":[{"id":35881,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35880\/revisions\/35881"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}