Question
Please assist in helping me understand Turkey's policies in this three part question: This questions is based on the article, Surrender your dollars, urges Turkey's
Please assist in helping me understand Turkey's policies in this three part question:
This questions is based on the article, "Surrender your dollars, urges Turkey's President Erdogan. in the Economist. The article examines the origins of Turkey's macroeconomic policies and their potential consequences.
Part 1: According to the article, Turkey's economy has grown very fast between mid-2016 and early 2018. If that is the case, why are Turkish large corporations trying to restructure their loans and Moody's has downgraded the ratings of 17 Turkish banks? According to the article, what factors have caused concern among investors about the prospects of the Turkish economy? Based on the information in the article, does the Turkish economy seem to have worked above, below, or at its production capacity in 2017? What is the evidence?
Part 2: According to the article, how may the June 2018 elections have affected fiscal policy in Turkey prior to the election? Are the government ministers promising that the current macroeconomic policies would continue after the elections? Under these circumstances, does fiscal policy seem procyclical or countercyclical, or acyclical? Explain your answer.
Part 3: According to the article, how does President Erdogan explain the fall of the lira to his constituency? What does he propose to his constituency as a solution to the depreciation problem?
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