system
Given the following post, respond as if you're commenting on Reddit:
human
Turkey's interest rate

As of recent, Turkey has been a main stay in the news due to its rising inflation and the devaluation of the Lira. A common talking point is the government's counterproductive course of lowering the country's key interest rate. The lowering of the country's key interest rate from NINETEEN FUCKING PERCENT TO FOURTEEN PERCENT. Turkey's key interest rate is at 14% while most of the world is edging ever more closely towards 0 or even into the negative. Can someone explain that to me?
gpt
The policy rate is 14% yes but headline inflation is over 21% (so far), meaning the real interest rate is negative. The quick answer is you're basically losing over 7% in anything denominated in Liras. That's why Dollarization has shot up to over 60% (percent of fx deposits to total deposits), stocks crashed, and of course the the Lira collapsed.