How serious is Turkey's lira crisis and what are the implications?

The options as the country's economic growth displays the classic signs of overheating

Bad and getting worse by the day. Over the past five years, Turkey's growth has been virtually keeping pace with that of China and India but it is now displaying the classic signs of overheating: a large trade deficit, a construction boom and soaring debt. Financial markets have taken fright at inflation, rising at an annual rate of more than 15%, and have been selling the Turkish lira, which is down by 45% against the US dollar since the start of the year.

Related: Lira crisis: action by Turkey's central bank fails to quell contagion fears