Erdogan pledges to place Turkey among top 10 economies
On the eve of the New Year, President of Turkey Recep Tayyip Erdogan addressed the members of the ruling Justice and Development Party (AKP) at a meeting in Istanbul. Erdogan went big in his wishes for the New Year and pledged to lead the country to the list of the top 10 economies. The president promised to give this issue his personal approach. “Our ultimate goal of becoming one of the top 10 economies in the world is a close reality and no longer a dream,” Erdogan said. He added that the officials had managed to save the economy from crises using the developed measures. Nowadays, the country awaits new reforms and new records for the lira and the economy on a broad scale. Independent experts often criticize Erdogan’s ideas on monetary policy guidance which contradicts the generally accepted principles and the basic rules of the economy. According to the Turkish president, low interest rates in the debt market may lead to lower inflation and stimulate economic growth. At the same time, a frequent rotation of central bank governors can only cement the beneficial effect. Erdogan forced the central bank officials to decrease the key rate by 5 pp at a time. As a result, the lira has been falling for the last two years. At the end of December, the national currency depreciated to an all-time low of 18.4 lira against the US dollar.