Turkey Is an Economic Problem Being Politicized, Varnholt Says

The video discusses the impact of Turkey's economic situation on emerging markets, highlighting the withdrawal of capital from these markets due to risk aversion. It emphasizes the need for caution in investing in countries with large current account deficits, like Argentina and Turkey, which rely heavily on foreign currency funding. The video contrasts the current situation with the 1990s crisis, noting that many Asian economies now have current account surpluses. It also explores potential opportunities in Turkish assets, despite ongoing political and economic challenges.

What are the characteristics of emerging markets that have current account surpluses compared to those with deficits?

What role does political conflict play in the economic situation in Turkey?