4th INTERNATIONAL ARTEMIS CONGRESS ON HUMANITIES AND SOCIAL SCIENCES, İzmir, Turkey, 3 - 06 June 2023, pp.157-158
Throughout history, national economies have continually undergone transformation and encountered
various extraordinary periods. Global crises, pandemics, or natural disasters have shaken the foundations
of economies and necessitated the revaluation of economic policies. The impacts of these extraordinary
periods on economic policies have often profoundly influenced the dominant understanding, playing a
role in paradigm shifts.
Following the Great Depression of 1929, the Keynesian approach that was adopted transitioned into
monetarist economic policies with the oil crises of the 1970s, and the 1980s became a time when liberal
economic policies proliferated worldwide. Crises and pandemics, with the potential to fundamentally
change economic structures, are complex and impressive events. These periods typically expose the
flaws in existing economic policies and necessitate the discovery of new solutions. For instance, the
2008 global financial crisis necessitated steps towards improving financial regulations and intensifying
institutional oversight. Similarly, the Covid-19 pandemic questioned the resilience of national health
systems and how governments can intervene quickly in extraordinary situations.
In extraordinary situations, the inadequacy of existing economic policies necessitatesthe development
of new strategies, policy instruments, and approaches. These processes bring a new perspective to the
existing order. To mitigate the adverse effects of situations like crises and pandemics and to accelerate
economic recovery, governments use stimulus packages and financial support measures known
as emergency action plans. These kinds of policies become important tools to accelerate economic
recovery. Therefore, economic policies are reshaped thanks to these measures, and inevitable paradigm
shifts affecting subsequent periods occur. The importance and influence of economic policies during
extraordinary periods are decisive. Crises and pandemics in a sense provide a ground for revaluating
these policies and instigate paradigm shifts. Analysing the impacts of extraordinary periods on economic
policies based on past events and experiences and evaluating how future decisions may be shaped is of
great importance.
The study will first briefly discuss the impacts of extraordinary periods in history within the context
of economic crises and pandemics. Following this, a general evaluation will be conducted on the 2008
crisis and the Covid-19 pandemic, which are the most recent examples of the crises that constitute our
subject matter, comparing them in terms of their emergence and effects. Finally, the paradigm shift in
economic policies during extraordinary periods will be assessed, taking into consideration data from the
U.S. economy.