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by Tuna-Fish
1355 days ago
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> According to Erdogan, it is not about economics. This is not accurate. He literally believes in economic theory that holds that interest rates cause inflation. The root of this theory is Islamic belief, but it's not that he believes that inflation is a necessary evil to stick to his principles, he believes that increasing interest rates would increase inflation. He has been very open about this belief for a very long time. The short slogan he's used is, roughly translated, "interest is the cause, inflation is the result". For example, see: https://m.bianet.org/english/economy/254059-erdogan-insists-... |
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He is right about this but wrong about the sign of the relationship!