S5 Ep1: Director's Cut - The extent of Turkey's crisis

Bruegel director Guntram Wolff welcomes Brad Setser, senior
fellow at the Council on Foreign Relations, and Jean
Pisani-Ferry, mercator senior fellow at Bruegel, to discuss the
deterioration of Turkey's economy.


Although a recent souring of relations with the US has provided
the immediate prompt for Turkey's current crisis, the country's
underlying economic malaise is more deeply rooted. 


Headlines have tracked the plummeting value of the lira, while
the trust of external investors has been challenged by recent
policy decisions. Though Turkey's case bears some of the
hallmarks of a textbook emerging-market meltdown, there are key
divergences. Meanwhile, President Erdogan's previous refutation
of IMF policy recommendation does not bode well for potential
assistance in the event that Turkey needs help brokering
extension agreements with its creditors. 


In conversation with Brad Setser, senior fellow at the
Council on Foreign Relations, and Jean Pisani-Ferry,
Mercator senior fellow at Bruegel, Guntram Wolff assesses
not only the nature of the crisis in Turkey but how the country
might navigate its way back to safer economic waters.


For further reading, consider the recent blog post written by
Grégory Claeys and Guntram Wolff discussing how the EU might
respond to the currency crisis unfolding in Turkey, including
options for the EU to help Turkey in the absence of any agreed
IMF assistance programme.