Read the text first…it isn’t as absurd as it sounds
My understanding of currency economics is mediocre but how would this work?
Let’s say the causes of the sinking lira persist – i.e. Turkey is becoming a less and less attractive place to invest and do business with, doesn’t this just mean Turkey is stuck with an artificially high currency?
I remember Egypt moved away from a pegged currency a few years ago to spur FDI. Wouldn’t this be impossible?
Tl;dr – weakened currency is a symptom of the issue, not the issue?
(More than happy to be corrected by someone who actually understands this)
It’s an interesting idea. I’m afraid politically impossible, though. Erdogan’s pride on one side and knee-jerk islamophobia on the other.
ECB: I’m going to make dollarisation in South America look like a fucking joke.
fuck that shit, too much corruption over there
The EUR is not a good fit for Turkey’s economic profile.
They should adopt the Mongolian tögrög instead.
no thank you
Lira crisis
>The EU should offer Turkey the ability to partially adopt the euro,
EU: “Hey, Erdogan. You know that crazy policy you have that you fired a bunch of high muckety-mucks over when they refused to implement it because it was a bad idea? The one that you just publicly stated that you’d never compromise on? If you want, we could arrange things so that you don’t have the ability to do that policy any more.”
Erdogan: “I think I’m good, thanks.”
EU: “Okay, well, whatever works for you.”
Turkey might wind up on the euro (or dollar or pound or something like that) over Erdogan’s inflation ideas, but it’s not going to be Erdogan making that call if it happens. It’s gonna be a move forced on them by confidence in the lira evaporating to the point that it’s unusuable. And they won’t need EU permission for that or wind up with control over the euro in that case.
9 comments
Read the text first…it isn’t as absurd as it sounds
My understanding of currency economics is mediocre but how would this work?
Let’s say the causes of the sinking lira persist – i.e. Turkey is becoming a less and less attractive place to invest and do business with, doesn’t this just mean Turkey is stuck with an artificially high currency?
I remember Egypt moved away from a pegged currency a few years ago to spur FDI. Wouldn’t this be impossible?
Tl;dr – weakened currency is a symptom of the issue, not the issue?
(More than happy to be corrected by someone who actually understands this)
It’s an interesting idea. I’m afraid politically impossible, though. Erdogan’s pride on one side and knee-jerk islamophobia on the other.
ECB: I’m going to make dollarisation in South America look like a fucking joke.
fuck that shit, too much corruption over there
The EUR is not a good fit for Turkey’s economic profile.
They should adopt the Mongolian tögrög instead.
no thank you
Lira crisis
>The EU should offer Turkey the ability to partially adopt the euro,
EU: “Hey, Erdogan. You know that crazy policy you have that you fired a bunch of high muckety-mucks over when they refused to implement it because it was a bad idea? The one that you just publicly stated that you’d never compromise on? If you want, we could arrange things so that you don’t have the ability to do that policy any more.”
Erdogan: “I think I’m good, thanks.”
EU: “Okay, well, whatever works for you.”
Turkey might wind up on the euro (or dollar or pound or something like that) over Erdogan’s inflation ideas, but it’s not going to be Erdogan making that call if it happens. It’s gonna be a move forced on them by confidence in the lira evaporating to the point that it’s unusuable. And they won’t need EU permission for that or wind up with control over the euro in that case.