Fiscal Policies and Inflation Within the Axis of Current Developments
Chapter from the book:
Ayyıldız,
Y.
&
Demirli,
Y.
&
Şahin,
S.
(eds.)
2024.
Inflation and Public Finance (Theory-Policy-Practice).
Synopsis
The Covid-19 pandemic outbreak and the resulting supply contractions, as well as the subsequent supply problems resulting from the ongoing Russia-Ukraine war, have led to increases in energy, commodity and food prices. After many years, it has become inevitable to fight against widespread and strong inflation both in our country and globally. In this context, the study examines the results of fiscal policies implemented in the light of current data, considering fiscal policy tools and examples from both Turkey and other leading regions and countries, within the framework of policy recommendations guided by economic theories in the fight against inflation. According to the results obtained, it has been determined that the implementation results of fiscal policies are generally inconsistent with theoretical facts. In addition, although a downward trend in global headline inflation is observed both in Turkey and based on regional and country examples, it has been concluded that the desired decline in inflation indicators has not yet been achieved.