DOI :10.26650/B/SS46.2020.006.02   IUP :10.26650/B/SS46.2020.006.02    Full Text (PDF)

The Covid-19 Pandemic and the Effectiveness of Fiscal Policies

Murat Ustaoğlu

The rapid spread of COVID-19 virus in the world has impacted a great deal upon social and economic life as well, causing elements of uncertainties that threaten the human health. For this reason, some economists argue that global economy is moving fast towards a state of crisis. It is now necessary to assess the efficiency of the fiscal policies to address a potential crisis in the presence of pessimistic scenarios because the structural differences between developing and developed economies affect the efficiency of the fiscal/monetary instruments. To better identify the more effective fiscal policy for Turkish economy, a fiscal multiplier calculation was performed, followed by the trend of change in the multiplier since 1960, concluding that government spending is more effective policy in addressing the approaching crisis. Based on the findings, ideal fiscal policies were recommended.


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