Selim Somçağ: The AKP’s ordeal with interest

Central Bank Governor Naci Ağbal’s EconomistheD within 21 months from the date of receipt from Turkeyhegovernor of the rdth central bankherdi. A very technical gheCentral bank bosses doing rev, hea predetermined periodit’s mechina ghecome to reve. Before this period expires gheNot found to get out of rev. Turkey 21 months dheMeet the third central bank governormoreThe Central Bank, more precisely, the AKP economy andheThere are serious management problems.hehe wants.

This turbulent trend has economic and foreign policy dimensions. The main problem of the economy is that the traditional economic model, which aims to achieve growth and increased employment through industrialization and development, uses external resources to finance imports,hehousehold consumption of external resources and investment in infrastructure for construction.heIt is the transition to an evaluation-based growth model.


Shortly after the AKP came to power, the FED (United States Federal Reserve) hit the home loan of the American people.mother conditions providedsignaturesInitially, high growth rates were achieved with this model, thanks to the global credit abundance that emerged with

Meanwhile, even though the current account ran record deficits,hepressure on visa feesangryI. This “blow and blow” of the Turkish economyheThe humidity came to an end when a bubble burst in the US housing market in the fall of 2008. As the world was on the brink of a general financial system collapse, the TL depreciated 45 percent against the dollar in 6 months. The Turkish economy contracted. Both the AKP and the financial community understand how fragile the Turkish economy has become.herdi.

After the 2008 crisis, the abundance of global liquidity FED et bmain central banksn doIt continued when they started printing money directly. This windr Tit re-inflated the sails of the Turkish economy. Turkey 2010-2013 dheIt was able to achieve high growth rates again in its humidity. However, this strategy by the FED led to a huge increase in commodity prices in 2012.

That is why the Fed gave the signal to hit the brakes on monetary expansion in 2013. How sensitive is the Turkish economy to the contraction in global liquidity 2008 ‘of gheBecause Rule, as well as Turkey’s foreign debt in the first 10 years of the AKP government Because it rose from $ 130 billion to $ 370 billion, the Fed signal, Turkey immediately devalues ​​as hot money outflow and is reflected. BheTL with extension to date devalentered the production process.


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