It is difficult to explain the current devaluation of the Turkish Lira against the U.S. Dollar on economic terms, as the current situation is a mere example of the global hegemon – the U.S. – exerting its political power on a so-called ally.
As the public debt level is currently very low, the Turkish government has an ample room to increase its spending level to boost the real economy.
“Ironically, this is the same era in which the rhetoric that central banks around the world gained their “independence” has become widespread. What happened actually was central banks have become dependent on the financial industry, as they were dependent on states in the Bretton Woods era.”
In his attempt to undermine China’s hegemony in the Asia Pacific, Trump is harming the Western alliance.
As Turkey is going through a systematic transition, reforms and new initiatives in economics are required in order to sustain growth and development.
The Turkish economy has her own problems such as current account deficit, as other economies have their own. However, it has showed her resilience and potential time and again in the last 7 decades and particularly in the 2000s.
There are a couple of changes that Turkey can pursue within its transformation to a presidential system in order to restrcture its macroeconomic governance.
As the new site of international hegemonic competition, East Asia perfectly reflects the multipolar character of the global system.
Ahead of the snap election in June 2018, Turkey is under a severe financial attack. It is quite apparent that Turkey’s macroeconomic indicators are quite healthy, and it is not possible to explain the current financial pressure “economically”.
“Turkey’s economic governance architecture is robust enough to withstand domestic and international shocks and will weather many storms to come.”