Tuesday 21 August 2018

What Is Going On in Turkey?


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A "massively oversimplified explanation",

  • Turkey wanted to spark growth and liberalized bank lending rules.
  • Banks and local businesses borrowed a lot of foreign denominated debt.
  • A boom ensued.
  • A bust is now ensuing.

And a detailed account (of a huge and complicated balance sheet mismatch by Turkish banks, with short term liabilities financed by long-term assets).

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