Lessons from Turkey on the evils of high inflation
It hurts investment and makes most people poorer
It took for ever and then it took a night. That was how Rudiger Dornbusch, an influential economist who died in 2002, described the gestation of a financial crisis. In the Dornbusch telling, booms go on for much longer than seems rational or possible before they end with a speed that also surprises. The unsustainable can be sustained for longer than you would think.
This article appeared in the Leaders section of the print edition under the headline “Turkey shoot”
From the July 23rd 2022 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Leaders
How to improve clinical trials
Involving more participants can lead to new medical insights
Houthi Inc: the pirates who weaponised globalisation
Their Red Sea protection racket is a disturbing glimpse into an anarchic world
Donald Trump will upend 80 years of American foreign policy
A superpower’s approach to the world is about to be turned on its head
Rising bond yields should spur governments to go for growth
The bond sell-off may partly reflect America’s productivity boom
Much of the damage from the LA fires could have been averted
The lesson of the tragedy is that better incentives will keep people safe
Health warnings about alcohol give only half the story
Enjoyment matters as well as risk