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Turkey Policy-Making Paralysis Promises More Markets Tumult

  • With more U.S. sanctions looming, effects seen as limited
  • Erdogan’s aides have so far been spectators to meltdown
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Jacob Funk Kirkegaard, senior fellow at the Peterson Institute, talks about Turkey’s economic and financial issues.(Source: Bloomberg)
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Turkey is set for another week of financial-market turmoil with its face-off with the U.S. showing no sign of abating.

While officials in Ankara, Istanbul and Washington have the means to stem the mayhem that sent the lira down 25 percent in the past month, the will to deploy them was absent through much of the weekend, with Recep Tayyip Erdogan maintaining his defiance toward the U.S. and financial-market orthodoxy in speeches Sunday.