Global crises and development of fiscal policies: Sample of Turkey

The issue of government intervention in the economy has been one of the most primary discussion points of economics in every period. Following the 1929 Great Depression, a new dimension has been brought to the role of government in economy, in line with standpoint of J.M. Keynes and an active role has been given to fiscal policy in achieving preventingeconomic crises. Later on, the developments emerging as a result of the oil price shocks in 1970s and the fiscal contraction policies implemented in Europe in 1980s have led to new discussions on the activity of fiscal policy. As a result of the developments, economists have criticized Keynes severely for the activity of task having been imposed to fiscal policy by him, in achieving preventing economic crises. Fiscal policy, whose importance has stayed background among other economic policies until the year 2008, has become a matter, whose importance among economic policies was started to be questioned again, as a result of the global crisis emerging in the USA and in order to overcome the crisis, an active role has been given to fiscal policy again. Turkey has tred to redress its fiscal balance by implementing a contractionary fiscal policy after the economik crises which outbraked in 1994 and 2001 years, and as in the other parts of the world, has activated implementations of expansionary fiscal policies in order to remove the influences of the global crisis. Keywords: Crisis, Global Economic Crises, Fiscal Policies, 5 April Decisions, Strong Economy Transition Program