Investor Lessons From Turkey’s Crash to Earth


Turkey is the most extreme example of the failure of institutions, but similar forces are at work in other emerging markets

The collapse of Turkey’s currency isn’t only a local catastrophe created by kooky economic policies and by picking a fight with the U.S. It is also a warning to investors in other emerging markets. The long-running bull case of improving economic governance is less solid than they think.

Turkey’s long boom led investors to think there had been permanent institutional change, but as boom turns to bust the old bad politics and policies have resumed in a new guise. True, the army isn’t in control this time around, but the increasingly…

Investor Lessons From Turkey’s Crash to Earth

Categories : Finance

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