Turkey Fired Its Central Bank Chief—Then Watched the Economy Burn

Turkey Fired Its Central Bank Chief—Then Watched the Economy Burn

Back in 2019, Turkey officially lost central bank independence—and things went downhill fast.

President Erdoğan fired the head of the Central Bank because he wouldn’t cut interest rates. Why? Because Erdoğan genuinely believed that higher interest rates cause inflation—yes, the exact opposite of what basically all economists agree on.

He went through four central bank governors in just a few years, all because they eventually refused to go along with his economic fantasies.

The result?

Inflation skyrocketed to over 80%

The Turkish lira collapsed

The economy spiraled into chaos

This is why central bank independence actually matters.

Because when politicians get to print money and play with rates for votes or vibes, currencies die and people suffer.

So next time someone says "we should just fire the Fed chair" or let a politician control interest rates—just remember Turkey.