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Erdogan’s Plan for Financial Independence in 5 Charts

  • President eyes exports to break Turkey’s reliance on hot money
  • Consumers pay the price in inflation as elections add urgency
Recep Tayyip Erdogan
Recep Tayyip ErdoganPhotographer: Kostas Tsironis/Bloomberg

President Recep Tayyip Erdogan’s push for lower borrowing costs aims to transform the economy into a job-creation engine that’ll keep him in power when elections come around in 2023, but it’s ordinary Turks who are so far paying the price.   

Turkey would no longer try to attract foreign inflows by offering high yields and a strong lira, Erdogan announced last week, abandoning a market-friendly approach that helped establish it as a major emerging market but set off a boom-and-bust cycle that’s lasted more than a decade.