The person is joking. In 2022, Erdoğan said that it was actually higher bank debt repayment due to increasing interest rates that was causing Turkish inflation, so he cut those rates against the IMF’s recommendation (he also convinced boomers in Turkey that the IMF was being used as a tool of the US to weaken Turkey). Erdoğan then doubled down and passed a law that would prevent companies from using hyperinflationary accounting in their annual reports to better provide actual returns.
The result was the worst period of hyperinflation in Turkey’s history. It is so bad that they are still having major inflation issues a couple years after Erdoğan began increasing interest rates and their fiscal policy room has shrunk massively. It’s not entirely Erdoğan’s fault though as a huge proportion of Turkish people would have lost their minds if he bumped up interest rates so…
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u/ebitdur 23h ago
Powell shitting bricks just looking at these numbers. He simply won’t cut rates in this environment, inflation will skyrocket.