I will be presenting my paper "Direct and Indirect Effects of Income Inequality on Economic Growth through Political Economy: Taxes as Proxy of Redistributive Pressure" at International Conference on Inequality in Re-distribution and Fiscal Policies Session on 2nd November.
I will talk a bit on Turkish economic policy which is driven by the President in 5-minute speech.
USD/TRY exchange rate has reached to 3,58 on December, 2. Four days later, Mr President decided to take control of USD/TRY through some suggestions, saying that higher USD/TRY exchange rate is a complot against Turkey.
Apart from the dependency of Central Bank and this speech, I am wondering if it is thought as our economy as closed economy and not affected by US monetary policy, or other countries' currencies which we are in relations with?
The second thing Mr President says that banks should lower the interest rates. If interest rate is lowered, why people would keep their assets in TRY.
His speech was only on USD/TRY. What about EUR/TRY? Should people exchange their EUR assets in TRY or gold then? What about ECB monetary policy then? Same for FED policies. How does he aim to control their monetary policies?
I think he assumed no other central banks, no trade, no other currency than USD and TRY...