Yesterday Erdogan dismissed the head of the Central Bank of the Republic of Turkey’s, Naci Agbal, and replaced him with professor Sahap Kavcıoglu. In a previous post, I claimed that Turkey has willingly or unwillingly adopted a kind of NeoFisherian policy. In this post, I will discuss this case within the framework of this hypothesis. […]

Here’s the Financial Times: Turkey’s central bank has dented hopes for a return to economic orthodoxy, ignoring calls from many investors to raise its main interest rate and sending the lira to a new record low. The currency fell more than 2 percent immediately following the decision to keep the benchmark one-week repo rate on […]