Sabri wrote:
Suppose somehow you managed to suppress your domestic interest rates by buying your own Treasury's dollar denominated Eurobonds, although whether you can do this or not is open to question as well.
I don't understand. There's no free lunch here. The downside is the risk involved. You have to repay this debt, not in your local currency, but in USD. If you have a BoP crunch, this will worsen it. Unless you default, which would go to show that you're not the U.S. Treasury. I guess you could fool people once -- but you're already giving it away by stating your intention i in PEN-L. Don't expect me to appoint you head of the Türkiye Cumhuriyet Merkez Bankası any time soon.
