As Erdogan Fights Turkey's Central Bank, Economic Reforms Anticipated

After a coup attempt was foiled in Turkey last July, and in the aftermath of an authoritarian crackdown on what was a liberal democracy inside a majority Islamic nation, the reign of President Recep Tayyip Erdogan is focusing on control of the independent central bank. As a fight over interest rates wages – the Central Bank of the Republic of Turkish recently raised rates against Erdogan’s publicly stated desire ­– Morgan Stanley has its eyes focused on Thursday, when an economic reform package is set to be announced by Erdogan’s increasingly divided administration.

Falling Turkish currency a concern with sluggish economy as rifts in economic administration mirror political climate in Europe

With the...