Of course monetary policy has no meaning nor influence these days

And we can print as much cash as we like, spend it, and “markets” will have no influence upon us.

Asian markets tumbled and the Turkish lira dived almost eight percent on Monday on fears that the economic crisis gripping Turkey could spill over into the global economy.

It’s amazing how those dang international markets always do have heir verdict upon domestic economic policy, isn’t it?

8 thoughts on “Of course monetary policy has no meaning nor influence these days”

  1. Neo-liberals (or ‘Jews’, as the Left calls them now) undermining the Turkish economy for nefarious reasons, obviously.

  2. You’re missing something crucial though Tim. Murphy’s wisdom is still superior to centuries of ‘conventional economics’

    The big question in Turkey is of course the Tax gap

    ‘But very few have noted what a core element in the problem is. That is Turkey’s shadow economy. This has averaged 31% over the last two decades (See page 54 here).

    Every rule of sound management of a currency has been broken. It has not been used to collect tax. Parallel currencies of consequent greater value have been allowed to circulate in its place. And the government has lost control of its economy as a result.’

    And therefore The Turks should be tackling the tax gap, maybe even using Murphy in a consultant role?

    ‘People think tax gaps are just measures of tax authority efficiency. They are that. But they are very much more. They show whether a government is in charge of its economy and currency. And they are, then, able predictors of crises.

    Tax gap measurement is, I think, a key macroeconomuc (sic) tool. We should get used to it.’

  3. I don’t want any government in charge of the economy any more than I want any government in charge of the weather – and it would have as much ability to so control.

  4. And therefore The Turks should be tackling the tax gap, maybe even using Murphy in a consultant role?

    If he plays his cards right, he could be in with a chance of Turkish vermine!

  5. Dear Mr Worstall

    ” … on fears that the economic crisis gripping Turkey could spill over into the global economy.”

    Turkey sneezes, the world catches a cold?

    DP

  6. There are some severe exposures to Turkey in Spanish and Italian (in particular) banks, some of which weren’t too healthy to begin with.

  7. They started blaming Trump for it last week, buried at the bottom of the article was a short paragraph explaining it in realistic terms so they can point to it and claim balance, but most people won’t get that far

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