What happens when you throw the conventional economics textbook out the window?Oliver James Montgomery We turn to Turkey to find out.

Inflation in Turkey is currently around 40%. Unlike in the U.S., where the Federal Reserve has been raising interest rates in an effort to bring down inflation, Turkey has done the exact opposite and actually lowered their interest rates. As a result, people are struggling to afford daily essentials, and the Turkish lira has sunk to record lows against the U.S. dollar.

This has happened under the watch of President Recep Tayyip Erdogan, who was just re-elected to a third term. Today on the show we find out how Turkey got to this point, and what it might take to recover.

Music by Drop Electric. Find us: Facebook / Newsletter.

Subscribe to our show on Apple Podcasts, Spotify, Pocket Casts and NPR One.

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org.