Turkish economy enters a vicious circle — Inflation and Devaluation

Turkish lira loses value rapidly

Turkish economy: Devaluation drives up inflation

Current account deficits drive up external debt

  • High prices have a negative impact on a country’s exports, so less export revenue is generated.
  • When prices for domestic products rise sharply, consumers switch to imported products. This is worthwhile if the inflation-induced price increase of domestic products is greater than the devaluation-induced price increase of imported products — import spending increases.

Declining growth and rising unemployment

What needs to be done?

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Our mission on this blog is to shed light on Europe’s role in the world economy. https://globaleurope.eu/

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Global & European Dynamics

Global & European Dynamics

Our mission on this blog is to shed light on Europe’s role in the world economy. https://globaleurope.eu/

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