Recep Tayyip Erdogan, Turkey’s president, believes that the remedy for inflation is to make money cheaper. Over the past year he has put his theory to the test
years ago Mehmet Arslan, an architect in his late 30s, and his wife Mediha could afford to buy a flat in Istanbul. No longer. Mr Arslan’s salary rose by 30% in the past year, but inflation has been at least twice that. House prices have soared by even more, the result of higher construction costs, a low housing stock, and a spike in demand, mostly from Turks hoping to protect their savings from inflation.
Some money comes in under the counter. In the first eight months of 2022, “errors and omissions” in the central bank’s accounts hit a surplus of $28bn. Much of that is believed to be gold and dollars from Russians who have fled to escape conscription and Western sanctions. Turkey has used foreign reserves to support the lira, a policy economists liken to selling the family silver. The bank is thought to have sold at least $100bn of reserves last year.
With credit no longer as readily available, Mr Erdogan has turned to spending to pep up the economy before the election. He has some headroom: at 40% ofcountries. The government has offered early retirement to 2.3m workers, pledged 600bn lira for energy subsidies, and promised to build 500,000 new homes in five years. This month it raised the minimum wage by 55% and the pay of civil servants by 30%.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Turkey has given up promoting political Islam abroadPolitical Islam looks to be a spent force in Turkey’s foreign policy, at least as far as the Arab world is concerned
Read more »
The Turkish opposition faces big obstacles to winning the electionAt least on paper, Turkey’s opposition has it all worked out. However, it is running out of momentum ahead of the elections due in June
Read more »
Ngannou calls White press conference 'bulls***' and opens up on why he left UFCFrancis Ngannou has opened up on his exit from the UFC, saying negotiations broke down over more than money. UFC president Dana White announced in a press conference that Ngannou had been ‘released…
Read more »
Why journalists can't name an MP arrested for rape: Inside the battle for press freedomRestrictions on what information journalists are allowed to publish are growing in UK courts and Parliament, editors and legal experts are warning 🔎 What you need to know, in today's Big Read by robhastings
Read more »
I wanted glam acrylics but they're so bad people are telling me to press chargesA WOMAN has revealed that she went to a nail salon to get a glamorous acrylic manicure, but was left horrified by the end. Beauty fan Abby took to TikTok to show off the nail fail that left her on …
Read more »
Warriors return to White House to celebrate 2022 titleSteve Kerr and Stephen Curry joined the White House press briefing on Tuesday morning. At the briefing, Curry thanked the Biden administration for its role in bringing Brittney Griner home.
Read more »