Turkey’s Treasury ministry is working on legislation to transfer the central bank’s 40 billion lira ($6.6 billion) in legal reserves to the government’s budget to shore it up, three economic officials told Reuters.Non-market rebalancing of government accounts because of right to coin. Cause and effect, the cycle is built in because it is, ultimately, MMT by Constitution. This seems no different than the banking we do that remits CB profits to Congress.
Including Turkey, there is usually a counter agreement, a 'Don't do it again', or equivalent that congests the flow makes is priced; and improvement in right to coin management.
The effect on the economy depends. If this was generally expected then not much. Just no impulse responses. If the cause is endogenous then the cure is always partial. The historical solution remains our best bet, make the right to coin as priceable as possible.
In our case we have a known history, almost exact instructions on how to do it at the generational swap.
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