Can Erdogan avoid an imminent financial crisis?
Turkey’s President Erdogan recently secured his reelection, but he now has to find a way to avoid what appears to be an imminent financial crisis. Erdogan’s unorthodox economic policies and his recent effort to juice up the economy ahead of the May elections have effectively pushed Turkey’s finances to a breaking point, and the country is on the edge of running out of usable foreign exchange reserves. Brad Setser, the Whitney Shepardson senior fellow at the Council on Foreign Relations whose expertise includes global trade and capital flows, financial vulnerability analysis and sovereign debt restructuring, joins Thanos Davelis to break down how Erdogan has brought Turkey’s economy to this point, and look at what choices the country has if it’s to avoid a deep financial crisis.
Read Brad Setser’s latest blog post for the Council on Foreign Relations: Turkey’s Increasing Balance Sheet Risks
You can read the articles we discuss on our podcast here:
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