Impacts of the Crises on Fiscal Policies in Turkey: A Comparison between 2001 Crisis and 2007-2009 Global Crisis

Aysel Arıkboğa

There has been a striking change in Turkey’s fiscal policy particularly since the 1990s. Since this time, rules-based fiscal policies have become the prevalent policy practice. While the use of discretionary policies during the 2007-2009 crisis constituted a major exception to the predominant rules-based fiscal policy paradigm, focus is once again on fiscal discipline and observing fiscal rules, especially after the transformation of the private sector’s debt crisis into the fiscal crisis of the state.This paper analyzes the impact of economic crises on fiscal policies in Turkey. Within this context, the focus is on analyzing the 2001 crisis and the 2007-2009 global crisis, and the respective effects of each on fiscal policy practices in Turkey. The paper finds that fiscal policies were designed in favor of the accumulation process both prior to and during the crises. It is asserted that fiscal policies were designed in favor of the accumulation process both prior to and during the crises.

Keywords: Crisis, fiscal discipline, fiscal policy, Turkey.

Language: English

Suggested Citation: Arıkboğa, Aysel 2013. Impacts of the Crises on Fiscal Policies in Turkey: A Comparison between 2001 Crisis and 2007-2009 Global Crisis. Atılım Sosyal Bilimler Dergisi 3(1-2), 63-78.

Türkçe Öz     Volume 3(1-2)