However, their outlook remains strong once the U.S. and Japan are excluded from the picture. I hope their forecast is on the mark. Unfortunately, I am afraid my hopes will not be realized. About a month ago, the Turkish economy stumbled as budgetary reform was shelved by the ruling party. The lira was cut in half , but even that did not restore confidence.
Inflation now is rampant in Turkey and the economy remains seriously damaged.
Last week, the problem was Argentina. A sale of Argentine treasury bills was postponed. Because Argentina's currency is tied to the dollar, no devaluation occurred there, but their stock market plummeted. The next day, currencies and stock markets in Chile and Brazil also tumbled. Part of the Argentine problem is a conflict over monetary policy.