The talk about capital account "attack" etc by foreigners is bogus one.
But let us assume it is true for sake of argument.
If my country is being attacked, I would sign up to defend it.....
As I know the people I share foxhole and trench with are regular people like me in end, who I agree and disagree with on whatever issue, but they for most part are in same boat as me on matter of life and death against an invader. I can trust them.
But the powerful people.....what about them? I break bread with people like them regularly? They allow me to? If not, least they can do is have basic sense on their power.
So if the powerful people are (related to the country's defense in war) doing such a thing as focusing on creating and perpetuating a civil war (on top of the foreign invasion they one day trot out as well)....and are going to direct me against own countrymen (or whatever catch they fancy past fighting the enemy)....then sorry, I won't sign up to have my life and effort squandered....and have foreign invader win in the end because we fought each other first thing or promoted weakness and stupidity inside by the process.
That is literally what lowering interest rate in situation of high inflation is like* (i.e doing something to deliberately make an economy worse).
It is literally taking sledgehammer on own people and then pointing to foreigners as being the culprit.
Along with the other dumb policies being done.
You make Turkish economy and society actually weak enough to be invaded later (or now) for sure.
* You will notice not one of these people saying "capital account/foreigner attack/conspiracy" is able to explain the logic behind the I/R drop in high inflation environment.
But let us assume it is true for sake of argument.
If my country is being attacked, I would sign up to defend it.....
As I know the people I share foxhole and trench with are regular people like me in end, who I agree and disagree with on whatever issue, but they for most part are in same boat as me on matter of life and death against an invader. I can trust them.
But the powerful people.....what about them? I break bread with people like them regularly? They allow me to? If not, least they can do is have basic sense on their power.
So if the powerful people are (related to the country's defense in war) doing such a thing as focusing on creating and perpetuating a civil war (on top of the foreign invasion they one day trot out as well)....and are going to direct me against own countrymen (or whatever catch they fancy past fighting the enemy)....then sorry, I won't sign up to have my life and effort squandered....and have foreign invader win in the end because we fought each other first thing or promoted weakness and stupidity inside by the process.
That is literally what lowering interest rate in situation of high inflation is like* (i.e doing something to deliberately make an economy worse).
It is literally taking sledgehammer on own people and then pointing to foreigners as being the culprit.
Along with the other dumb policies being done.
You make Turkish economy and society actually weak enough to be invaded later (or now) for sure.
* You will notice not one of these people saying "capital account/foreigner attack/conspiracy" is able to explain the logic behind the I/R drop in high inflation environment.