World Ch. Schedule : THU 22:30 KST
* Date : 2018-08-27
-Aykan Erdemir / Senior Fellow at Foundation for Defense of Democracies, Former Member of the Turkish Parliament
-Steve Hanke / Professor of Applied Economics at The Johns Hopkins University
Turkey's lira is crashing, causing a financial crisis that's sending chills across the global economy. How did Turkey, which recorded one of the highest growth rates in the world until early this year, end up in this financial disaster?
Experts say the financial crisis has a direct correlation to the diplomatic conflict with the U.S. over the release of an American pastor detained in Turkey. As the U.S. failed to make progress in the negotiations for the minister, it doubled down on its steel and aluminum tariffs on Turkey. In response, Turkey is also responding by raising tariffs on U.S. cars and alcohol. But many point out that this is just the surface level problem and that the root cause lies within Turkey's economic structure.
On [The Point: World Affairs], we sit down with Shin Se-don, Professor of Economics at Sookmyung Women's University to analyze the causes of the financial crisis in Turkey. We also connect to Professor Steve Hanke, a currency expert at Johns Hopkins University and Aykan Erdemir from the Foundation for Defense of Democracies to get a local view and analyze how the currency crisis is impacting the world.