Demiralp: Turkey's Economic Woes Due To Past Mistakes

The video discusses Turkey's economic challenges, including a technical recession and high inflation. Despite significant rate hikes, inflation remains high due to weak central bank credibility and accommodative fiscal policy. Public confidence in the central bank is low, affecting inflation expectations. The video also explores potential policy shifts by President Erdogan, who believes in lowering interest rates to reduce inflation, contrary to orthodox economic views.

What are the two dimensions that contribute to Turkey's economic situation despite rate hikes?

How does weak central bank credibility affect inflation expectations in Turkey?

What is the significance of consumer confidence in relation to inflation rates?

What potential shift in economic policy is President Erdogan considering?

What indicators suggest the timing of a rate cut by the central bank?