Eurozone debt crisis ‘ticking time bomb’ at Turkey’s door – economist

PanARMENIAN.Net - The eurozone debt crisis has turned the European economy into “a ticking time bomb” that lies at Turkey’s door, according to Daren Acemoğlu, a Massachusetts Institute of Technology professor of Armenian descent who is ranked among the world’s top economists.

“The Turkish economy is closely connected to the European economy. Thus, it is open to all possible shocks,” Acemoğlu told Hurriyet Daily News.

“Turkey aims to slow down credit expansion while keeping interest rates too low. This is not the right thing to do,” he said, adding that Turkey has similarities with the pre-crisis period of U.S. and European economies.

“Nearly 60 percent of Turkey’s exports are to the European market,” he said. “A possible slowdown in the eurozone could create problems regarding the financing of the current account deficit.”