Economics

Summers Says MMT Backers Should Look at Erdogan’s Turkey Woes

Ex-Treasury secretary speaks after Turkey’s surprise rate cut
Turkish inflation rate at 24-year high, lira near record low

WATCH: Former US Treasury Secretary Lawrence Summers says supporters of modern monetary theory should consider Turkey’s economic troubles following its central bank’s shift to an ultra-loose monetary policy. Source: Bloomberg

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By Chris Anstey

August 18, 2022 at 3:30 PM UTC

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Former US Treasury Secretary Lawrence Summers urged supporters of modern monetary theory -- a heterodox economic school that argues governments can spend more than they think without spurring runaway inflation -- to look at the troubles such thinking has produced in Turkey.