Nouriel Roubini’s Uneducated Comments About the Turkish Economy

 Insider Monkey

Nouriel Roubini has been consistently bearish throughout the recovery. Roubini’s popularity eroded as his bearish predictions about the U.S.  economy turned out wrong. Recently Nouriel Roubini was the guest on Turkey’s Bloomberg HT television and talked about the Turkish economy. Last week the Turkish Institute of Statistics announced that Turkey’s 2011 Q1 growth rate was 11%. This is even higher than China’s cooked growth rates. So Roubini’s recommendation to Turkey was to raise interest rates and control capital flows to cool down the economy. Clearly Roubini is uneducated about the Turkish economy and the figures released by the Statistics Institute.  Here is why Roubini is wrong:

Turkey Sees a Break From Hot-Money Flow

Marc Champion & Joe Parkinson    The Wall Street Journal

ANKARA—Japan's devastating earthquake and tsunami could have an unsolicited benefit for emerging markets, reducing massive short-term investment flows they have struggled to absorb, Turkey's central bank Governor Durmus Yilmaz said.

Stressing that any economic impacts fade in importance next to the enormous and still unfolding human suffering in Japan, Mr. Yilmaz also said Tuesday that in the longer term he believed the need for Japan to rebuild "will regenerate the Japanese economy."

Emerging markets around the globe saw a selloff of assets Monday, as appetites for risk fell in the wake of Japanese Prime Minister Naoto Kan's warning that the danger from radiation leaks at the damaged Fukushima nuclear power plant was growing.