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An Important Lesson from Turkey

Monday, March 29, 2021

The lesson from Turkey is clear. Central bank’s independence is the anchor of market confidence. If Indonesia does not want to share the same fate as Turkey and lose its credibility, the government needs to immediately figure out, one way or another, how to reduce its budget deficit.

arsip tempo : 171872349829.

An Important Lesson from Turkey. tempo : 171872349829.

THE Indonesian government and monetary authorities, including Bank Indonesia (BI), should pay attention to Turkey’s current misfortune. There is an important lesson there. Indonesia could fall into the same trap. The rupiah can collapse, and the economy can soon follow.

The source of Turkey’s problem is an interventionist economic policy which gnaws away the central bank’s independence. Presid

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