HYMAN P. MINSKY’S “BIG GOVERNMENT” APPROACH IN SECURING ECONOMIC STABILITY AND ITS APPLICABILITY IN THE TURKISH ECONOMY

Year 2019, , 807 - 828, 31.12.2019

Erkan Tokucu , Serkan Künü , Murat Akça

https://doi.org/10.36543/kauiibfd.2019.034

Abstract

The aim of this article is to discuss the applicability of Hyman P. Minsky’s “big government policy” proposal in the Turkish economy. According to Minsky, one of the main causes of economic cycles is the private sector’s decreasing investments and profits. The government is able to contribute to economic stability by reversing the decreasing investments and profits by means of big government policies. Turkish macroeconomic data verifies theoretical explanations of big government regarding total profits. Moreover, budget indicators show that the government can implement big government policies to secure financial and economic stability in Turkey.

Keywords

Big Government, Sectoral Financial Balances, Economic Stability

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