Inflation has become a problem throughout many different countries as of recently, to the point that the FED in the US has decided to raise interest rates in order to reign it in. Internationally, inflation seems to be even more out of control, with Turkey having one of the most ridiculous rises in interest rate in recent times. Inflation in Turkey has reached 83%, a 24 year high. The annual rate is estimated to be 186.27%, with very little to stop it due to Turkish president Erdogan claiming interest rates as the "mother and father of all evil". The country seems to have reached an economic crisis impacted by both local and global events.
Although Turkey is not the only country currently suffering from the consequences of inflation, they are definitely one of the most impacted. With the global economy heading towards a recession, the country looks to be in dire straits. Changes in leadership or financial policies may be needed to help recover from the current situation. However, with a looming recession it could already be a bit too late for Turkey.
Source: https://www.bbc.com/news/world-europe-63120478
Overall great post topic. A common theme for this month's blog has been the issues presented by the increasing inflation rate but not a lot of people have touched on the international impact. I think it's important to look at this issue from a global standpoint because the United States is not the only country experiencing these issues. From the information presented in your post, we are not experiencing the extreme inflation that Turkey is currently experiencing, hopefully as a country, they can recover eventually from this crisis.
ReplyDeleteThanks for the response. I definitely agree that we should look at inflation not only from a domestic standpoint, but also from an international standpoint in order to fully understand the issues that we are all facing.
DeleteJoseph, I like the international topic!
ReplyDeleteI agree that Turkey has quite a problem on their hand, even compared to what we are dealing with in the U.S right now. The other day I read an article talking about the Turkish Lira: their currency and how this is effecting their current economic situation. The article stated that since 2013 there have been decreases in value of the Lira, and inflation is for sure a major piece. As the lira has fallen in value, the price of importing fuel, and food to the country has gotten drastically expensive, not to mention the value of peoples wages.
Hopefully Turkey can figure out how to implement policy and finally control their economic crisis.