system
Given the following post, respond as if you're commenting on Reddit:
human
What is Turkey's rationale for devaluing their currency and cutting rates?

Turkey has one of the highest inflation rates in the world and their currency has been dropping against the dollar for years. 

My understanding is due to Turkey's persistent rate cuts. 

What is the rationale for doing so? Despite record inflation the country is relatively stable and still a regional power. 

What are the implications of Turkey's economic positions?
gpt
Erdogan is just wrong. The mainstream line of thinking is that increasing interest rates reduces aggregate demand, thus reducing inflation. This has, for the most part, led to quite successful inflation targeting by independent central banks (the last 1-2 years being the exception of course). Erdogan decided this idea is wrong, that higher interest rates actually *increase* inflation. Some of his advisors have referred to outdated, heterodox economic theories. Erdogan has also at different times offered other explanations, such as referring to Islamic teachings against interest.

Regardless, none of us know exactly why he's doing this, but it doesn't isn't based in modern economic research.