Turkish expert: American monetary policy increasingly alarming for the world
The wrong monetary policy and the inability of the US government to instill confidence in the market are increasingly disturbing the world, said Kaja Ardik, an expert on international trade at Piri Reis University in Istanbul.

In an online interview with Xinhua, he stated that the world is becoming increasingly sensitive to American hegemony and the hegemony of the dollar.In response, “countries around the world have spoken, are increasingly reacting and taking necessary measures against US monetary policy,” Ardik said.

One such response, he said, is for countries to reduce their debt stocks in the US. “It’s a reaction to American policy,” he added.

The United States is experiencing stagflation, and its economy is showing signs of recession, which has led it to abuse the dollar’s dominance even more, Ardik said.

“When a country’s economy experiences two consecutive quarters of negative growth, it is called a recession. The US economy shrank for two consecutive quarters, with annual growth falling by 0.9 percent in the April-June period,” he added.

To curb rising inflation, the US Federal Reserve raised its benchmark interest rate by 75 basis points in July, the second consecutive rate hike and the largest since 1994.

The expert warned that this disturbing situation in the United States, the world’s largest economy, will deeply affect other countries as they will face challenges of economic development.

“Rising energy and food prices complicate all economies, both developed and developing. It is difficult to be optimistic in that context,” he said.

Ardik emphasized that Turkey will also suffer from “pneumonia” because the American economy is starting to “cough”.

“Every time the Fed raises interest rates, Turkey loses a lot of investment capital and opportunities. Turkey already has very serious problems in finding funds and foreign resources…Investments inside Turkey are also slowly disappearing,” said a Turkish expert in an interview with Xinhua.

By Editor

Leave a Reply