President Tayyip Erdogan has been criticized for his handling of the Turkish economy, which has led to a period of soaring inflation and currency crashes. Some of the main factors that have contributed to this include:
Lack of monetary policy independence: President Erdogan has been known to interfere in the central bank’s monetary policy decisions, leading to a lack of credibility and trust in the institution. This has contributed to a loss of investor confidence and a decline in the value of the Turkish lira.
High levels of debt: The Erdogan government has relied heavily on foreign borrowing to fund infrastructure projects and stimulus packages, leading to high levels of debt. This has made the economy vulnerable to external shocks and has contributed to the currency’s depreciation.
Inflation: The Erdogan government has been criticized for mismanaging inflation, which has been consistently above the central bank’s target for several years. This has been driven by a combination of monetary policy decisions, structural issues, and supply chain disruptions due to the COVID-19 pandemic.
Lack of structural reforms: President Erdogan has been criticized for not implementing structural reforms that would improve the competitiveness of the Turkish economy, such as labor market, tax and judicial reforms.
Political instability: Erdogan’s foreign policy has led to a number of diplomatic issues, which has led to a decline in tourism and foreign investment, increasing the economic pressure on the country.
All of these factors have contributed to a decline in the value of the lira, a rise in inflation, and a decline in investor confidence in Turkey. This has led to economic hardship for many Turkish citizens, and has raised concerns about the long-term stability of the economy.
It is important to note that the economic downturns and the devaluation of the Turkish Lira are the result of complex interactions between different factors, and other analysts may have different perspectives on the issues and causes.