We’ve another example of how modern monetary theory works. Turkey.
Turkey’s runaway inflation has hit close to 80 per cent on the back of a collapsing currency, falling interest rates and a slowing economy.
Consumer prices rose to 79.6 per cent in July compared to the same period last year, marking the 14th consecutive jump in inflation to its highest rate since 1998. It rose 2.4 per cent between June and July.
Amazing how this works out, isn’t it? Give the politicians control over taxes, spending, money creation and interest rates, all four together, and disaster follows. Maybe we shouldn’t give politicians that control over all four then?