The Turkish Lira Crisis of 2018

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The paper describes the main internal and external events leading up to the devaluation of the Turkish Lira in 2018.
Bibliographic citation: MUELLER-FRANK, M. (2021). The Turkish Lira Crisis of 2018. IESE, ECON-422-E.
Date: 01/04/2021
Author(s): Manuel Mueller-Frank
Document type: Case
Department: Economics
Languages: English
Year of the events: 2018
Geographic area: Turkey
Learning objective The class discussion evolves around the following questions: 1) Why did Turkish companies increasingly borrow in foreign currency? Would you? 2) How does fiscal and monetary policy of large economies impact emerging economies? 3) What role did Turkish leaders play in the devaluation? 4) How should they manage it?