Bulls Backing Turkey See No 1990s Nightmare in Coalition Options
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As Turkey’s ruling party faced losing its parliamentary majority, government officials had one resounding response: Remember what happened in the 1990s.
That era’s bickering coalition parties stoked hyperinflation and rampant off-balance sheet lending that culminated in the financial crisis of 2001. The prospect of another bout of coalition rule sent the lira to a record low the day after last Sunday’s election, and bond yields soared. A tentative recovery since then underscores optimism that a joint government might be more successful this time around.