Tag: Debt

Turkey’s Currency and Debt Crisis Has Been Years in the Making

After decades of stagnant growth, President Recep Tayyip Erdogan’s ruling AKP party turned around Turkey’s economy in the early 2000s. It was a boom underscored by easy borrowing that prioritised loans to the construction sector over capital intensive areas like manufacturing and IT development. ‘The administration knew that a slowdown was on the cards, and[that’s]why they pulled elections forward to...

Is China’s Day of Reckoning Coming?

Lost in all of the geopolitical noise are some basic concepts of economics. It’s no secret that China’s economy has been built by their openly mercantilist economic policies. Mercantilism is, oddly enough, President Trump’s dominant economic philosophy. It involves protection of domestic producers through high barriers to foreign investment and a cheap currency created through counterfeiting (we call this ‘inflation’)...