The role of fiscal and monetary policies in achieving economic stability in Turkey and Brazil during the period 2000-2015

This purpose of this study is to clarifying the impact and relationships between some macroeconomic variables in the field of fiscal and monetary policies and achieving economic stability away from the external shocks that affect both the aggregate supply and the demand of Turkey and Brazil during the period 2000-2015. However, economic stability policies include controlling both consumer price index, and unemployment to certain limits, as well as achieving the goal of continuously reducing inflation and reducing the unemployment rate to normal. A stable environment is fundamental to the efficiency of an economy. While the issue of stability can divide into three specific economic objectives: real output growth, full employment, and price stability. These objectives are interrelated and interdependent. Without full employment, the potential output in an economy will not fully realize. However, price fluctuations may lead to uncertainties. The research hypothesis is that developing countries that have reached rates of economic growth and maintain an acceptable level of economic stability, which is characterized by a low rate of inflation or close to the regular rate of unemployment. The most significant findings of the study, the fiscal and monetary policies impact on achieving economic stability in Turkey and Brazil, However, fiscal and monetary policies can use to achieve long-term economic stability if the increase in the money supply is equal to the growth of net national product without the use of policies based on expansion and contraction.