The role of fiscal policies prevention of global crisis: 2008 global crisis Turkey analysis

The main purpose of this thesis is to evaluate the fiscal policies which were carried out in the Global Economic Crisis of 2008 and the results of these policies. In this context, the term of economic crisis, its theoretical basis, the international financial crises of developing countries during globalization process are analysed in the first chapter. In the second chapter, crises that Turkey faced in years between 1980 and 2007 are examined chronologically. And in the last chapter, Global Economic Crisis of 2008 (Mortgage Crisis), the effects of this crisis on Turkish economy, fiscal policies that were carried out, and their results are discussed. Between the years of 2002 and 2011, public expenditures; tax; and borrowing were also estimated by using least square methods. In the result of analysis, the problems of unit root and structural break in time series are encountered. The dummy variables are utilized in order to overcome these problems. As a consequence of applied models, it can be said that public expenditures is a more effective policy than tax and borrowing principals in fight against the Global Economic Crisis of 2008.