A cut-rate theory: Turkey’s currency spiral
Economist Podcasts
The Economist
4.3 • 5K Ratings
🗓️ 26 November 2021
⏱️ 23 minutes
🧾️ Download transcript
Summary
As President Recep Tayyip Erdogan keeps pushing his upside-down economic ideas, the currency plummets and an immiserated population grows restless. Sunday’s presidential election in Honduras will be a test of the country’s democracy; fears abound of the deadly protests that marred the last vote. And our obituaries editor reflects on the life of Rossana Banti, a storied, lifelong anti-fascist campaigner.
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Transcript
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| 0:00.0 | Hello and welcome to the intelligence from The Economist. I'm your host, Jason Palmer. Every weekday, we provide a fresh perspective on the events shaping your world. |
| 0:17.6 | The election coming up on Sunday in Honduras has people nervous both inside and outside the country. |
| 0:23.6 | Claims of fraud last time led to deadly protests. |
| 0:27.6 | What looks to be a tight race this time could lead to similar allegations with similar results. |
| 0:33.6 | And she fought the German occupation of Italy. |
| 0:38.1 | She fought the fascist regime of Benito Mussolini. |
| 0:41.2 | Even 70 years later, she hosted left-leaning artists and intellectuals. |
| 0:45.7 | Our obituaries editor reflects on the extraordinary life of Rosanna Banti. |
| 0:57.0 | First up, though, Shopkeepers in Turkey are burning symbolic money. |
| 1:07.0 | They're trying to draw attention to the economic policies of President Richard Tayyip Erdogan, |
| 1:15.1 | who might as well be burning actual money. One of them said, we cannot sleep until morning. |
| 1:20.5 | Unpaid rent is piling up. |
| 1:27.1 | Turkey's economy is in crisis, or rather an ongoing crisis, has suddenly got much worse. |
| 1:33.3 | Inflation is soaring, 20% officially but probably more, and the Turkish lira is sinking. |
| 1:39.3 | At one point this week, it fell as much as 15% in a few hours. |
| 1:48.8 | Basic economic wisdom would suggest that the central bank raise interest rates to crimp the money supply, but the president is working to some unconventional wisdom. |
| 1:53.5 | In a speech on Monday, President Rajab Tai Erdogan defended his central bank's interest rate |
| 2:00.7 | cuts and suggested that he was deliberately |
| 2:04.9 | pursuing a weaker currency to drive growth. |
| 2:09.2 | Piotr Zeletsky is the economist Turkey correspondent and is based in Istanbul. |
| 2:15.3 | He promised to lift the, quote, scourge of interest rates from people's backs. |
| 2:21.7 | He also said he, Turkey, was waging an economic war of independence and promised to stand firm. |
... |
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