More government statements
Contiuing on with the government statements post from yesterday, PM Erdogan said today that Turkey would not be affected by a European crisis. In fact, he underlined that “the crisis would not even pass tangent to Turkey this time around”. To recall, when he said the global crisis would pass tangent to Turkey back in 2009, the economy ended up with a record contraction, making me wonder if the PM had skipped the trigonometry class and thought diameter was in fact called tangent 
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The PM also noted that spending discipline was the main factor behind Turkey’s resilience and that the government would remain committed to fiscal discipline. Nice words, except that there has not been a fiscal discipline last year, once you adjust for cyclical factors. But as I was noting in my interview yesterday, I hope fiscal discipline will be an integral part of the Medium-Term Economic Program, which will be announced in September.
Finally, the PM reassured everyone that the government would have the lira stabilize somewhere in between. I would be really curious to know what level that somewhere in between is and what tools the government has in its arsenal to achieve that. Now, if the Central Bank were not independent, I would say the government could order the CBT to stabilize the lira in that somewhere in between, as the CBT has some tools to deal with the lira weakening. But the CBT is independent, so I am wondering…
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