(a)[2]
Using the information given, calculate Turkey’s real interest rate in January 2022.
(b)
- Explain why the Turkish lira depreciated from September 2021. [2]
- Consider how far producers in Turkey are likely to have been affected by the depreciation of the lira in the foreign exchange market from September 2021. [4]
(c)[6]
Assess whether Mr Erdoğan’s economic policies have had a favourable effect on Turkey’s economy since 2020.
(d)[6]
Apart from interest rate changes, assess what alternative policies could be used to bring down Turkey’s rate of inflation.