: The prospect of another bout of coalition rule sent the lira to a record low the day after last Sunday election, and bond yields soared, according to Business Week. A tentative recovery since then underscores optimism that a joint government might be more successful this time around. That era bickering coalition parties stoked hyperinflation and rampant off-balance sheet lending that culminated in the financial crisis of 2001. While voters delivering a minority victory to the AK Party have plunged Turkey into indecision as the politicians haggle, they also thwarted ambitions to concentrate power around President Recep Tayyip Erdogan and weakened those seeking to undermine the independence of the central bank. Checks and balances had been weakened over time by the concentration and tenure of power. The political developments are positive for long-term economic management, said Bryan Carter, who helps manage about $360 million of emerging-market debt at Acadian Asset Management in Boston.
(news.financializer.com). As
reported in the news.
Tagged under , topics.