week 8 article

Message to Ankara, Why Turkey is an economy to worry about

http://www.economist.com/node/21552213


 This article from the economist puts Turkey as an economy that may be in trouble in the near future.  "based on the standard warning signs of trouble—from rapid credit growth and high inflation to a big external deficit—one country stands out. It is Turkey"  The article states that Turkey has too much foreign borrowing and a "growing competitiveness problem and a dangerous addiction to the riskiest types of foreign capital." The Economist suggests that Turkey compensate by saving more. Also, the writer says that Turkeys lack of recognition of the problem will be the economies biggest problem. 

This article did a relatively poor job of explaining the issue to someone who does not fully understand economics.  I think I understand the urge to start saving more and stop relying on foreign money in the current economic situation.  With the Greek economy near default and the success of other economies tied to Greece, I understand the potential risk of relying on foreign money.