“They’re simply going to drive one mad. They say they will cut interest rates if inflation falls, this is not a proper understanding; this is the wrong logic because the causality is not one of inflation as reason and rates as outcome. Rates are the reason, inflation is the outcome,” Mr. Erdogan said, reiterating his thesis that is contrary to economic orthodoxy.
Thursday, February 5, 2015
The Turkish President is in a fight with his central bank governor over monetary policy. Possibly President Erdogan came up with this idea on his own, or maybe he's been reading blog posts. In any case, he certainly sounds like a neo-Fisherite.