Aug 10 2018

Turkey’s Erdoğan cannot win war on reality – Washington Post

Turkish President Recep Tayyip Erdoğan may believe that he is fighting off an economic attack by sinister international enemies, but he will lose a war against reality, economy columnist Matt O’Brien wrote for the Washington Post.

“Maybe the best way to tell a government’s policies are failing is when it blames the rest of the world for waging an “economic war” against it,” O’Brien said.

“That, after all, is what Venezuela’s Nicolás Maduro has been telling his people for years, and it’s what Turkey’s Recep Tayyip Erdoğan has now started to say. The real culprit, of course, is that both governments have forced their central banks to follow counterproductive, if not outright ruinous, policies. But no matter: The truth can have a hard time competing with foreign scapegoats,” he said.

While Turkey is not yet undergoing a full-on crisis like Venezuela, O’Brien said, it would do unless Erdoğan chooses to treat the problem as an economic one rather than as a hostile attack.

Turkey needs higher interest rates, something that Erdoğan is ideologically opposed to, he said, despite all economic indicators suggesting they would be a good thing.

Else, if things continue as they are, Turkey’s banks and businesses will be soon left in real trouble.