Turkey Set to Pause Easing as Prices Surge

Real time example how to fuck up a currency.



I don't get it why the Turks are just watching how the lira evaporates because of a monetary policy that isn't based on science but on wishful thinking of a single person. Why isn't there not more public rage about the situation or why don't we hear about it hear in Europe? I think there is a lot of irrationality in this.

I also don't get it why Europe and the ECB are not more alerted about the situation. I also wonder why there isn't more news about banks having to make huge write-offs on loans to turkish companies. The USD/TRY could sink to 10 or rise to 20 within 2022, depending on the decisions of very few people. If Turkey still has somewhat control of what's going on, such a decision should be close.

How can you successfully do business in such an environment, if in the end the movement of the underlying currency is the main factor determining the success of your services and products?

I wonder how this works out over the next 10 years. Any insights?

They will end up owing trillions to Qatar

Turkey is not basing its decisions on standard economics. Better wait and see what comes out in the near future.
Standard economics recommends raising CB interest rates to control inflation, but there is much more to it.
For example, part of the theory is based on major currencies traveling between countries to take advantage of interest rate differentials. But who is going to invest in Turkish Lira, a non-stable currency?