The intervention of the government in the economy during two big global financial crises and the consideration by fiscal policy: Example of Kazakhstan

After financial liberalization, the financial crises speeded up markedly for the emerging market economy. The depreciation of national currency and the banking sector problems such as currency and maturity mismatches, liquidity problems-insolvency and non-performing loans are the main causes of financial vulnerability and lead to the deterioration of banks` balance sheet.Macroeconomic instability, global financial conditions, the structure of domestic financial system, exchange rate regime and the problems in the regulatory and supervisory system were the causes of financial crisis.The world has passed through probably the most severe crisis, the Global Crisis, since the Great Depression in 1929. The first measures taken against the Global Crisis were monetary character but they failed to achieve expected results. Therefore recently on the agenda is the fiscal policy that has been nearly forgotten for almost decades. Previously the economy was market-oriented and government did not do any intervention, now the government became the most important driving force in the economy in terms of fiscal policy, in terms of monetary and interest policies and also became authorized to create employment policy.Financial crisis, the losses of the total production (Gross Domestic Product), banks failures, recession, unemployment and anti-crisis programs of the countries increases the importance of the subject.Since the collapse of the Soviet Union the rapid developments in Kazakhstan have gone through several changes. In this thesis, the comparison among the Great Depression in 1929 and the Financial Crisis in 2008 will be explained. Also the influence of the 2008 Financial Crisis in the economy of Kazakhstan and anti-crisis program of the government will be explained.