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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
Bloomberg business news
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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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.