Turkish Policy Makers Are Missing in Action, Says Bluebay's Riley

The video discusses Turkey's economic challenges, focusing on the role of an independent central bank and the potential for capital controls. It highlights the market's demand for higher interest rates and the lack of response from Turkish policymakers. The discussion includes the possibility of turning to the IMF if rates are not increased, leading to a harder economic landing.

What is one of the main challenges faced by countries when their central bank is not seen as independent?

• Increased foreign investment

• Stable currency value

• Lower interest rates

• High yields and weak currency

Why is the discussion of capital controls in Turkey considered extraordinary?

• Turkey is not reliant on international finance

• Turkey has a stable currency

• Turkey has a surplus in its current account

• Turkey has a strong entrepreneurial private sector

What is one reason Turkish policymakers might be hesitant to raise interest rates?

• It might upset the president

• It could lead to a stronger currency

• It would increase the current account deficit

• It would decrease foreign investment

What might happen if Turkey does not increase interest rates soon?

• They might need to implement capital controls

• The currency will strengthen

• The economy will stabilize

• The current account deficit will decrease

What are the potential outcomes if Turkish policymakers delay raising interest rates?

• Capital controls or seeking IMF assistance

• A decrease in market demands

• Increased foreign investment

• A softer economic landing