Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 28, 2020 erstellt
Beschreibung:
The cash strapped Turkey's gloomy economy was already ailing before the emergence of COVID-19 pandemic. The August rout of 2018 caused serious cracks as lira tumbled against the dollar (25% in three days and 41% in just two weeks); consequently, core inflation peaked at 26% and key interest rate shot up to 24% in October 2018. Currency crisis (the worst since 2001 Turkish economic crisis) along with coronavirus health crisis and the resultant Great Lockdown jolted the Turkish economy from its roots sending chills to the bones of financial markets, which could cost $50 billion or more. If the Turkish government (President Erdogan in particular) is not able to come up with at least $50 billion to support its economy during this extraordinary tough time, coronavirus as a heavy puncture will send the ailing Turkish economy right to the burial ground, this was reflected in ineffectiveness of policy interventions by the Turkish central bank (i.e. abbreviated as TCMB). According to Fitch's latest forecast, Turkish economy is expected to contract 3% in 2020 (i.e. forecast of 3.9% growth)