Inflation and joblessness are alarmingly high, and growth has been minimal. Political uncertainty is spreading.

As Turkey muddles through a grinding economic crisis, the unshakable Mr. Erdogan now appears to be confronting a force he can’t command: international markets.

Global impact: The biggest immediate threat to Turkey’s economy is loans in foreign currencies. Turkey’s medium- and long-term foreign currency debts exceeded $328 billion at the end of 2018, according to official data.

Analysis: The firing was, for investors, a signal that Mr. Erdogan would recklessly lower interest rates while pumping credit to businesses and households. That approach may spur short-term spending and growth but risks a full-blown crisis in the future.