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What would be a "reasonable" interest rate in a country with a 21% inflation rate?

Reader comment on item: The Religious Roots of Turkey's Currency Crisis

Submitted by Lan Astaslem (United States), Dec 29, 2021 at 23:33

What exactly would constitute "reasonable interest payments" in a country with a 21% inflation rate given that inflation could obviously go much higher, making risk much greater?

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Daniel Pipes replies:

As I understand it, the interest rate should match the inflation rate, not be less than it.

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Note: Opinions expressed in comments are those of the authors alone and not necessarily those of Daniel Pipes. Original writing only, please. Comments are screened and in some cases edited before posting. Reasoned disagreement is welcome but not comments that are scurrilous, off-topic, commercial, disparaging religions, or otherwise inappropriate. For complete regulations, see the "Guidelines for Reader Comments".

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