O.K., who ordered that? With everything else going on, the last thing we needed
was a new economic crisis in a country already racked by political turmoil. True,
the direct global spillovers from Turkey, with its Los Angeles-sized economy, won’t
be large. But we’re hearing that dreaded word “contagion” — the kind of contagion
that once caused a crisis in Thailand to spread across Asia, more recently caused a
crisis in Greece to spread across Europe, and now, everyone worries, might cause
Turkey’s troubles to spread across the world’s emerging markets.
It is, in many ways, a familiar story. But that’s part of what makes it so
disturbing: Why do we keep having these crises? And here’s the thing: The
intervals between crises seem to be getting shorter, and the fallout from each crisis
seems to be worse than the last. What’s going on?