r/wallstreetbets • u/abishop717 • 23h ago

Discussion 5 rate cuts 😮

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u/Kriztauf 22h ago

The ErdoÄŸan school of economics says that cutting interesting rates is the best thing you can do to tame inflation

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u/GuyWithPants 22h ago

Agent Eroganopolos continues to report astounding success in infiltrating the Turkish government

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u/kaystared 15h ago

Eroganopolos and his Gyro Gestapo have secured the future of the Greek people (Turks)

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u/Lezzles 22h ago

We're somehow dumber than that now so it wouldn't shock me.

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u/MortemInferri 22h ago

Why is that? How does adding more cheap money make the dollars that already exist worth more?

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u/A_Novelty-Account 22h ago

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/Pretend-Marsupial258 20h ago

The Lira's inflation rate is currently 38.1%, which is the lowest inflation they've had in years.

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u/Lezzles 22h ago

You'd have to ask Erdogan.

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u/NamelessFlames 22h ago

lower rates = lower inflation

less money being given out to people holding bonds

trust its a great system that definitely works (don't look at the lira)