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
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