“The country has prospered from an influx of often short-term foreign funds, partly due to ultra-loose monetary policy in the US and Europe, which encouraged investors to seek higher returns in Turkey and other emerging markets.”
USAGOLD note: As Turkey unravels we need to take into consideration the long list of other emerging nation states in similar straits as outlined above. The contagion effect is not coming from one direction but from multiple sources from one end of the globe to the other. Turkey is simply the most visible at the moment. Unintended consequences abound. If you would like to gain a deeper understanding of the forces at work, the Financial Times article linked above is a good source of background information.