I could write you an encyclopedia full of differences.
But I don't think I have that much time.
Normally, what needs to be done right now is to raise interest rates at least until the end of the first quarter of 2025 and not to raise the minimum wage at the beginning of the year. I think they need to free the dollar exchange rate starting from the beginning of the second quarter, but it doesn't look like they will do that.
Interestingly, years ago, when they should have raised interest rates, they lowered them and aimed to reduce inflation in this way. But of course, this is impossible. They could have kept interest rates at 25% at least, but they kept lowering them and they started to raise interest rates starting from the second half of last year, but normally when interest rates increase, inflation decreases, right? They started to raise interest rates and inflation started to increase. The situation that happened in the 1990s and 2000s is happening right now.
It is not difficult to lower inflation, but... These are all my own ideas.
Oh, thank you. That's more than enough. It sounds like it doesn't matter what's done, nothing really helps with inflation in Turkey's case.
May the new Argentinian way be a solution?
The biggest reason for inflation in Turkey is the regular increases in the minimum wage every year. Because of this, the price of everything in the market increases. You can understand from this graph.
https://tradingeconomics.com/turkey/minimum-wages
What kind of path is this and how did the Argentines do it?