By guest contributor Sanjay Guglani, CIO, Silverdale Fund Management
The first part of this article expounded the situation in Turkey and its genesis. What do capital markets expect from Turkey? At the core of Turkey crisis is the free fall of Turkish lira in the absence of a credible monetary policy. The markets need to see the breaking of the vicious cycle of rising inflation and weakening lira through a sharp increase in interest rates (to slow lending,...