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Turkey on the hyperinflation vanguard

Lira is down 31% so far this year and as consumer inflation accelerates a housing market collapse is inevitable

by David P. Goldman November 18, 2021November 19, 2021

President Erdogan is presiding over a dramatic reversal in Turkey's fortunes. Image: Twitter

Under pressure from President Recep Tayyip Erdogan, Turkey’s central bank cut interest rates while most of the developing world raised them, sending the Turkish lira into a tailspin.

The lira has lost 31% of its value during 2021 and more than 80% since 2013. With consumer price inflation running at 20% year-on-year as of October, Turkey faces hyperinflation.

Essential imports including more than a hundred categories of medication began disappearing from stores earlier in the fall.