The impact of the monetary and fiscal policies implemented by Türkiye on economic growth during the economic crises experienced in 2001, 2008 and 2020

Economic crises have been the subject of extensive research for years, providing valuable insights into their nature, causes, origins and triggers. These studies underline the importance of understanding crises for economic and fiscal sustainability. In this context, the aim of this study is to understand the nature of economic crises and contribute to the literature by examining which policies or policy components mitigate the effects of these crises. Specifically, the study examines the effects of monetary and fiscal policy components on economic growth in Türkiye from Q1 2000 to Q4 2023. In addition, the effects of the policies implemented during the financial crises of 2000 and 2008 and the pandemic crisis of 2020 on economic growth are analyzed separately. The study examines the policy components that help to mitigate the effects of crises. Fiscal policy instruments considered are interest-free government spending, public borrowing and taxes, while monetary policy instruments include nominal interest rates and inflation. In addition, macroeconomic variables such as unemployment, consumption and investment, which influence growth, are included in the analysis. Based on this data, an econometric model was created and analyzed using the Vector Error Correction Model (VECM). The results show that public spending, consumption and investment have a positive influence on economic growth, while tax revenue, borrowing expenditure, inflation, interest rates and the unemployment rate have a negative influence on economic growth.