Tayyip Erdoğan, Turkey's right wing populist leader is reelected, the LIRA (TRY) drops to all time lows. Erdoğan vows to continue cutting rates while Turkey faces the worst inflation in over 20 years. A IMF bailout of Turkey cannot be ruled out. The Turkish economy has already collapsed.

Chart 1

Chart 2

Tayyip Erdoğan Turkey's populist leader and so-called strong man, has almost single handily decimated the Turkish economy, mainly under his extreme right wing policies and nationalistic fervor.   Europe, which is also teetering on the edge of right wing populism versus democracy, can be seen when an economy, like Erdoğan's power grab, ends up over spending money on military, while appeasing corruption and creating scapegoats.  In this case Erdoğan's extreme polices, via his governing party platform, against political and social rights.  That being Turkey's minority Kurds and the  LGBTQ community. 

As noted with the Chart 1 above of the LIRA, since Erdoğan became Turkey's President in August 2014 has lost 70% of it purchasing power.

Chart 2 shows Turkey's inflation, that despite its sharp decline from Nov 2022 peak, the Turkish inflation rate is still running at a 20 year high.  The sudden drop, very much alike Western economies and inflation, was based on the oil/energy price decline after Biden's SPR release, Europe stockpiling oil/gas and Russian sanctions/oil cap.  Yet, what should be noted in Chart 2, is the decline of the LIRA against Tukey's inflation problem and Erdoğan is following the fascist rulebook of allowing government to control Central Bank polices, by ordering Turkey's Central Bank to cut rates, that in his opinion, would offset inflation.  A populist viewpoint, that pours money into the economy to assist citizens with diminishing purchasing power, while bolstering its export market, of course this only leads to hyperinflation.  

Turkey will eventually be bailed out by the IMF as the country goes from ruin to ruin.