Erdoganomics: The Eccentric Logic of the Turkish Economy

Under President Erdogan’s leadership, Turkey has shifted from its secular Kemalist roots toward an authoritarian, Islamized presidential system, a transition marked by the centralization of power and the suppression of political rivals, such as the recent arrest of the Mayor of Istanbul,,. Domestically, the country is grappling with a severe economic crisis and potential bankruptcy characterized by hyperinflation and a collapsing currency, largely driven by Erdogan’s unorthodox policy of lowering interest rates based on religious convictions rather than mainstream economic theory. Despite this internal instability, Turkey maintains significant geopolitical leverage by adopting a "Neo-Ottoman" foreign policy that balances relationships between major powers like the US, Russia, and China while utilizing strategic assets such as the Bosphorus Strait and refugee controls to pressure the European Union.