The most common question on most minds nowadays would probably be the concern regarding how Türkiye is planning to bring inflation down and prop up the Turkish lira. Furthermore, why won’t policymakers raise interest rates like the U.S. Federal Reserve (Fed) or the European Central Bank (ECB)?
Just to recapitulate an essential point: Although the entire economic outlook is not dire, nominal variables are challenging in Türkiye. Nevertheless, unemployment, growth rate, industrial production, export and fiscal budget balances are usually positive.
2022 will be remembered as the year of uncertainties due to a global tightening cycle and a major war in Ukraine. But on the other hand, the new banking quake in the United States and Europe also offers further warnings regarding the chronic problems and risks associated with the conventional financial system.
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