Volker Wieland proposes a turnaround in monetary policy in Turkey ("Deutsche Welle")

The financial crisis in Turkey has calmed down for the moment, the pressure on the Turkish has lessened. However, President Erdogan is trying to influence the national bank, speaking out against interest rises. In an interview with Deutsche Welle, Volker Wieland explains why the independence of national banks is so important.

"In Turkey the objective of price stability is threatened," he said. Erdogan was trying to push the economy. This led to higher inflation and the currency crashed. The central bank could stop this trend by raising intrest rates. In return, this could slow down growth.

Critics argue that the national bank's independency also frees itself from political control. According to Wieland, this does not hold true. "As long as the central banks act within their mandate, this is no problem because this mandate, which is the central bank's objective, has been determined by the parliament," he said.

Deutsche Welle: "Warum sollen Zentralbanken unabhängig sein?"