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Turkey Insiders

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Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
Turkey Insiders
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Istanbul, Turkey

The Turkish currency and debt crisis of 2018 is an ongoing financial and economic crisis in Turkey with international repercussions due to financial contagion. It is characterised by the Turkish lira plunging in value, high inflation, rising borrowing costs, and correspondingly rising loan defaults. The crisis was caused by the Turkish economy's excessive current account deficit and foreign-currency debt, -for some analyists- in combination with President Recep Tayyip Erdoğan's increasing authoritarianism and his unorthodox ideas about interest rate policy. Some analyists also stress the leveraging effects of the geopolitical frictions with the United States and recently enforced tariffs by Trump administration on some Turkish products such as steel and aluminum.While the crisis was prominent for waves of major devaluation of the currency, later stages were characterised by debt defaults and finally by economic contraction. With the inflation rate stuck in the double digits, stagflation ensued. The crisis ended a period of economic growth under Erdoğan-led governments, built largely on a construction boom fuelled by easy credit and government spending.
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