Turkey Inflation Slows to 64% In Boost to Erdogan
TimeNov 25, 2022
The Facts
Hafize Erkan, a former banker at Goldman Sachs and the now-closed First Republic, has been selected by Pres. Recep Tayyip Erdoğan to take the helm of Turkey's central bank. The Princeton-educated Erkan, 41, will be the central bank's first female governor.
Years of unorthodox monetary policy have shaken investor confidence as a cost-of-living crisis continues to take its toll in the country. Erkan, replacing current governor Sahap Kavcioglu, has been described by a colleague as "tough, smart, and effective."
The Spin
Pro-establishment narrative
Turkey is lucky to have secured a competent, respected figure to helm their central bank. Erkan's credentials are sterling, and her appointment signals a turnaround for Turkey's economy, which has posted respectable growth despite inflation. Her reputation in the world of finance is a testament to the kind of dynamism she will bring to the role as Ankara's central bank governor, and his blazing a trail as the first woman to hold that position in Turkey.
Establishment-critical narrative
While it seems Erdoğan may be shifting gears from his disastrous economic policy, there will be no economic recovery in Turkey unless he gives the central bank, and his ministers, latitude to undertake economic reform. Erdoğan's heavy-handed interference in the economy, and generous handouts, risk making Turkey the "sick man" of the global economy. Erdoğan needs to exercise patience and restraint by letting his government make painful reforms, something which remains to be seen.
