• Türkiye: Continuing to accept exchange rate depreciation would perpetuate hyperinflation situation – Natixis

Noticias del mercado

7 julio 2023

Türkiye: Continuing to accept exchange rate depreciation would perpetuate hyperinflation situation – Natixis

How can Türkiye get out of hyperinflation? Continuing to accept exchange rate depreciation means perpetuating the inflation-exchange-rate depreciation loop, analysts at Natixis report.

How can inflation be sharply reduced in Türkiye?

The solution that has been used successfully is to: Move to a fixed exchange rate regime against the Dollar, in a credible and irreversible manner, thereby lowering inflation expectations; Bear the cost of disinflation, i.e. accept the loss of production that results from the slow disinflation relative to the fixed exchange rate.

Continuing to accept exchange rate depreciation would perpetuate the hyperinflation situation.

 

Enfoque del mercado
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Abrir cuenta demo y página personal
Entiendo y acepto la Política de Privacidad y estoy de acuerdo con que mi nombre y datos de contacto sean procesados por TeleTrade y utilizados para contactarme en lo referente a: