The impacts of the new economy on fiscal policies

The process form of economy has been changing as a result of the ongoing developments appeared in the information and communication technologies. In the parallel of these developments, there has been a consensus on the beginning of a new economy that is different from the previous one and this term is called a ?new economy?.New economy has a number of differences in corporation with the previous one and emergences many micro and macro economic consequences. The researchers and policy makers focus on the effects of the new economy on fiscal policy nowadays. The debate of whether fiscal policy can be implemented in the new economy has emerged. The aim of this study is to investigate whether the new economy affects on the fiscal policies, if there is any effect, how these policies must be implemented in the new economy. In this context, firstly, it reviews the concept of the new economy and then examines the traditional fiscal policies and the factors affecting these policies. In the next section, the effect of the new economy on the fiscal policies and the fiscal policies that must be implemented in this economy is presented.When the findings are completely evaluated it can clearly be seen that the implementation of the fiscal policies, particularly tax policy, in the new economy becomes more and more difficult. Moreover, the results show that more rules-based policies should be followed in the new economy due to fact that individuals can access information much faster and this situation leads to politic inefficiency. In light of the results of this study, it is suggested that an independent fiscal policy committee should be constituted in order to be able to prevent delays that hinder fiscal policy.