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TURKEY – Turkey’s Slow-Motion Economic Crisis (Selva Demiralp, Şebnem Kalemli-Özcan, Project-Syndicate)

Banks cannot engineer a balance between exchange rates and interest rates in a country with free capital flows, where banks’ funding conditions are affected by the global economic environment and by country risk. As Turkey has demonstrated, using banks for this purpose destroys both internal and external economic balances.

https://www.project-syndicate.org/commentary/turkey-economic-crisis-in-three-stages-by-selva-demiralp-and-sebnem-kalemli-ozcan-2021-01