- Turkey’s rookie Central Bank governor Gaye Erkan is getting good reviews in the international press. She is an accomplished Wall Street banker, who is certainly capable of growing in her new role.
- BUT, can she subdue Turkey’s soaring inflation, which Central Bank itself predicts will climb b to 60% by year-end?
- Her mission is made more difficult by President Erdogan still demurring at rate hikes.
- Instead, Gaye Erkan and her boss Mehmet Simsek are experimenting with a novel approach to inflation combat.
- One pillar of this approach is to engineer “a credit crunch”.
- Can Gaye Erkan become the new national hero by beating inflation using a credit crunch?
Useful sources:
Tim Ash: Erkan clears out and cleans up the CBRT
https://www.paturkey.com/news/tim-ash-erkan-clears-out-and-cleans-up-the-cbrt/2023/
Former First Republic star nabs top bank job in Turkey
https://www.crainsnewyork.com/finance/who-hafize-gaye-erkan-first-woman-head-turkeys-central-bank
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