Fiscal Policy and Economic Change during Period of Pandemic

Abstract

The aim of the study is to reveal the effects of the ongoing fiscal and economic policies since the beginning of the pandemic (Covid-19) period in the world. In the study, first of all, fiscal and economic policies in extraordinary situations have been approached theoretically from a historical perspective then the changes caused by the health crisis in the world generally in the field of economy and finance were discussed. The deepening of structural problems with the effect of the pandemic and their emergence with the economic crisis and their effects on public expenditures especially health expenditures, to the public expenditures, economic growth, price stability and budget balance are discussed in detail in this study. In the analysis part of the study, a general evaluation was made based on concrete data, and examinations were included in the time series by making use of national and international reports. In the study, it was seen that countries across the world faced with an increase in public debt, increase in inflation and unemployment rates, a decrease in growth rates and capital outflows from countries during the crisis. As a country case study, in Turkey, as many countries, within the shade of Covid-19, in order to mitigate the economic impact of the crisis, some expansionary fiscal policies under the name of "Economic Stabilization Shield" were discussed. At the end of the study, the economic and financial policies recommended to be implemented during extraordinary periods in general and especially during the pandemic process are included.