Inflation is soaring in Turkey, and the economy is being hit by economic sanctions. Its currency is tanking. Poor people are suffering the most.
Some emerging economies, including Turkey and Argentina, could be forced to cut spending to bridge yawning deficits. As interest rates continue to rise in the US and Europe, there is no respite for them any time soon.
Under a new economic program, Turkey wants to cut its growth sharply and promised to curb public spending, as it seeks to avoid a full-blown economic crisis fueled by massive inflation and a plunging currency.
The Turkish inflation rate hit 25 percent year-over-year as the economy teeters. President Erdogan responded by calling on the state to raid stockpilers and asking people to inform police of price increases at shops.
Facing the harsh realities of global markets, Buenos Aires and Ankara have taken different paths to drive their domestic agendas. But, as global contagion fears recede, will Turkey follow Argentina and take its medicine?
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