How can Turkey avoid bankruptcy? - Page 2 - Politics | PoFo

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Sandzak wrote:Monte Negro is also not part of the EU but they have the Euro as currency.

Bosnia has the "Konvertibilna Marka" which is tied to the Euro, 2 KM are 1 Euro.

Pegging your currency to other stronger ones has advantages, but it is also a double-edged sword that can ruin a country if it's not handled right. Can Turkey get more ruined than it is today? Yes, it is possible.

It puts all your monetary policy in the hands of foreign central banks. If the value of your currency deviates in value from what it should have, it is increasingly vulnerable to speculative attacks and requires the state to defend its value, something that has bankrupted many in the past. China had their currency pegged for 2 years after the financial crisis of 2008 and it was successful for them. On the other hand, we have Argentina, whose fixed exchange rate with the US dollar became a complete disaster they still have not recovered from.
Sandzak wrote:Monte Negro is also not part of the EU but they have the Euro as currency.

Bosnia has the "Konvertibilna Marka" which is tied to the Euro, 2 KM are 1 Euro.

Montenegro is small and used the Deutche Mark before so they got a small exception because of that.

Convertible Mark requires you to have foreighn currency which Turkey will have trouble getting to convert to new currency.


Euro is perfectly fine for most. Greek corruption and debt is a seperate problem and yes, sure it would be easier for them to resolve it with their own currency by massive inflation but that wasn't the case at the time. The long story short if they had their own currency and would try to inflate out of debt then it would cause the same amount of economic problems for the people faster while they would be tutally cut off from financial market which they are not right now. So solely blaming the Euro for Greek problems in insane, they would be fucked even with their own currency.

Typical British attitude to problems. (This is semi-satire)
Potemkin wrote:Introduce the Euro as currency? Yeah, because that worked out so well for Greece…. :excited:

It did work very well for Greece indeed. Even though Greece did not suffer from hyperinflation in the particular moment in time when it joined the euro, it did suffer from it recurringly every 2 or 3 decades before but not again since. Turkey has suffered from hyperinflation recurringly as well in the past few centuries as have most regular countries actually and hence why many countries opt to peg their currencies to the euro or the dollar. Smaller countries have fragile currencies, heck even the British pound has now become fragile, a currency that used to be the gold standard up to very recently.

British people as most of western Europeans have been very privileged to enjoy what enables the so-called "white privilege". A strong currency backed by tons of gold largely taken from their colonies, the vast majority of the planet has not enjoyed such a privilege so for many countries the issue of hyperinflation is an actual problem.

Turkey can peg its currency to the euro and it eventually will if things continue spiraling.

Having said, I do not like John using the terms "Greek corruption" because it is both inaccurate and slightly racist. As stated many times before, Greek people have been paying more tax per GDP than both the EU and the global average both before and even more after the crisis.

Greek government mismanagement is a lot more accurate and this mismanagement would have created the same problems regardless of currency. In fact, Greek participation on the euro was leveraged by Greece to soften the financial slap, quite successfully even if some people believe or claim otherwise.

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