By Sada Garibova

January 19, 2022

While economic experts predict that Turkey’s new economic model will inevitably send the Turkish economy into a deep recession and impoverish its population, the regime is undeterred, and its commitment to new, unorthodox economic and monetary policies is unwavering. Given the historical pattern, a popular backlash is unlikely, and it would in any case not be allowed to imperil the survival of the regime. President Recep Tayyip Erdoğan is fully backed by the nationalist cadres of the state bureaucracy. The collapse of the lira may ultimately be more likely to pave the way for a more entrenched, authoritarian regime than to boost the prospects of the opposition.

By Barış Soydan 

December 10, 2020

President Recep Tayyip Erdoğan is certainly right to point to the need of reforms to restore the confidence of international investors in Turkey. Yet his determination, and assuming that he’s sincere, his ability to see reforms through is very much in doubt. Besides, Erdoğan retains a hands-on approach to monetary policy even after the departure of his son-in-law Berat Albayrak from the Ministry of Finance. He may well decide once again to stimulate the economy with cheaper and larger amounts of credit, which would inevitably further destabilize the Turkish economy.

By Barış Soydan

August 22,  2018

Last year, Turkey was the fastest growing economy among the G20 countries. Now it is going through a severe currency crisis. The lira has lost more than 40 percent against the US dollar this year. A recession is at the door. President Recep Tayyip Erdoğan accuses the United States of waging economic 'war' against Turkey and has threatened to ‘look for new allies’. Yet Turkey has no alternative to Western capital, and will sooner or later going to have to do whatever it takes to restore the confidence of Western investors.

By Gareth H. Jenkins

June 20,  2018

The rapid depreciation in the value of the Turkish Lira since the beginning of 2018 is the product not only of the collapse of any remaining vestiges of investor confidence in the regime of President Recep Tayyip Erdoğan but a symptom of the failure of the ruling Justice and Development Party (AKP) to address the long-standing structural vulnerabilities of the Turkish economy.