Turkiye provides a curious case of macroeconomic analysis, with the country following an unconventional economic policy—backed by President Recep Tayyip Erdogan—of keeping interest rates low, and not high, to combat sky-high inflation. It's not working yet, and a change seems to be brewing
Turkish President Recep Tayyip Erdogan
Image: Ludovic Marin / AFP
The theme for the past two years when it comes to macroeconomics has undoubtedly been nothing but inflation. We have seen increases in policy rates at a historical pace across countries and continents.
However, there has been one notable exception i.e., the 8th largest economy in the Eurozone area: Türkiye. Turkish President Recep Tayyip Erdogan, who largely drives the economic policy of the nation believes that high interest rates are a cause of inflation rather than its remedy.