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Econ 101 Is Bunk to Erdogan in Debate on Interest Rates Role

Your economics textbook got it all wrong. At least that’s what Prime Minister Recep Tayyip Erdogan says.

The Turkish leader, 60, is emerging as a global pioneer of putting an untested theory of economics into action. While central bankers around the world, including Turkey’s, have made interest rate decisions based on the textbook assumption that higher rates will work to slow inflation, Erdogan and his administration argue the opposite.