1/4
Unfortunately as less money enters Turkey and more money leaves, Turkey's current account deficit will contract. But if its current account deficit contracts, Turkey must either produce more, invest less, or consume less.
nytimes.com/2022/02/19/wor…
Unfortunately as less money enters Turkey and more money leaves, Turkey's current account deficit will contract. But if its current account deficit contracts, Turkey must either produce more, invest less, or consume less.
nytimes.com/2022/02/19/wor…
2/4
Internal imbalances, after all, must be consistent with external imbalances. Obviously producing more would be best, but in the near term that's pretty unlikely. Because investing less would make things worse in the long run, ultimately Turkey must cut consumption.
Internal imbalances, after all, must be consistent with external imbalances. Obviously producing more would be best, but in the near term that's pretty unlikely. Because investing less would make things worse in the long run, ultimately Turkey must cut consumption.
3/4
Unfortunately the only real way to cut consumption is to reduce the real wages of workers and the middle class. Even putting a substantial burden on the rich won't affect consumption by nearly enough.
Unfortunately the only real way to cut consumption is to reduce the real wages of workers and the middle class. Even putting a substantial burden on the rich won't affect consumption by nearly enough.
4/4
No matter what Ankara says it will do, in other words, unless there is a substantial revival of tourism it is pointless to expect that things will not get worse for ordinary people.
No matter what Ankara says it will do, in other words, unless there is a substantial revival of tourism it is pointless to expect that things will not get worse for ordinary people.
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