Turkey’s interest rate corridor: controversial but still effective | beyondbrics

Turkey’s interest rate corridor: controversial but still effective | beyondbrics:

"

Turkey’s use of a broad “interest rate corridor” as an instrument of monetary policy was controversial when it was first introduced in late 2010.

Two and a half years later, in spite of a broad consensus that this unconventional measure has been surprisingly effective, it remains no less controversial.

That is not least thanks to recent speeches by Prime Minister Recep Tayyip Erdogan, in which he has blamed the recent violent protests against his government on a mysterious international organisation he dubbed “the interest rate lobby”."

'via Blog this'