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A comment on Turkey’s inflation hits 83% as Erdogan vows to keep cutting interest rates. Parent comment

Re:Turkey’s inflation hits 83% as Erdogan vows to keep cutti... by faller_slive on Monday October 03, 2022 @09:17AM (#33067091)
According to Erdogan, it is not about economics. He says that is is following Islamic teaching. Technically any interest being charged is haram.

> “What is it? We are lowering interest rates. Don’t expect anything else from me,” Erdogan said Sunday in televised comments from Istanbul. “As a Muslim, I’ll continue to do what is required by nas,” he said, using an Arabic word used in Turkish to refer to Islamic teachings.

https://www.bloomberg.com/news/articles/2021-12-19/turkey-s-...

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Re:Turkey’s inflation hits 83% as Erdogan vows to keep cutti... by Tuna-Fish on Monday October 03, 2022 @09:28AM (#33067222)
> According to Erdogan, it is not about economics.

This is not accurate. He literally believes in economic theory that holds that interest rates cause inflation. The root of this theory is Islamic belief, but it's not that he believes that inflation is a necessary evil to stick to his principles, he believes that increasing interest rates would increase inflation.

He has been very open about this belief for a very long time. The short slogan he's used is, roughly translated, "interest is the cause, inflation is the result".

For example, see: https://m.bianet.org/english/economy/254059-erdogan-insists-...

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Re:Turkey’s inflation hits 83% as Erdogan vows to keep cutti... by malshe on Monday October 03, 2022 @09:53AM (#33067520)
> "interest is the cause, inflation is the result"

He is right about this but wrong about the sign of the relationship!

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