Will Turkey be the First NATO Country to Get Wrecked by Inflation
At the end of September, Turkey’s annual inflation rate reached 83.45% per a report by the Turkish Statistical Institute (TUIK).
In August, inflation hit an alarming 80.21%.
In addition, data supplied by the independent Inflation Research Group (ENAG) indicated that Turkey’s actual annual inflation rate rose to 186.27% in September compared to 181.37% in August.
In light of the growing inflation, Turkish economic authorities have started implementing the “new economic policy.” Since last December, Turkey has rolled out this new monetary policy that is meant to stabilize the Lira. Previously, the Central Bank of the Republic of Turkey slashed the policy rate to 12%, which laid the groundwork for Turkey’s current inflationary nightmare
In early September, Turkish authorities announced the rollout of a program for “mid-term economic development”, per a report by TAAS.
The goal of this plan is to bring inflation down to 65% by the end of 2022. The ultimate goal is to get inflation all the way down to 9.9% in 2025.
Turkey has been ambitious both in domestic and military terms. Like many nations who pursue the policies of “guns and butter”, Turkey is beginning to experience the negative side effects of overstretching your resources. As a result, Turkey is the NATO member with the highest inflation rate.
While Turkey receives a significant amount of coverage for its geopolitical ambitions, a lot can still be learned from its domestic politics. Ultimately, the Turkish case serves as an example of how the warfare/welfare state eventually leads to economic turmoil. One can only hope that Western nations can begin reconsidering their activist domestic and foreign policies. It’s the only way to preserve our great civilization that has largely been descending into chaos over the last century.