Saturday, 30 April 2011

Erdogan's Bizarre Sharia-Influenced Economic Policy

Speaking to a congress of Turkish businessmen, Turkish Prime Minister Erdogan recently announced that his government intended to reduce both inflation and interest rates and that its goal was to eventually reduce real interest rates to zero.

“We aim to cut the real interest rate in the long run, so people will increase their incomes through working, not through interest,” said Erdo─čan. “Eventually we aim to equalize the interest rate and inflation rate.”


Although he did not explicitly refer to it in his speech, Sharia law prohibits the earning of interest on money. It is impossible to believe that Erdogan's bizarre notion of zero real interest rates - a policy that would have dramatic effects on saving behaviour, foreign investment and exchange rates if ever implemented - has not been influenced by these religious considerations.

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