Journal of Social and Administrative Sciences www.kspjournals.org Volume 3 December 2016 Issue 4 The Effects of Economic Policies in Turkey: An Application for the Period After 2000 By Mehmet BÖLÜKBAŞ †1 Abstract. The main objective of the study is to analyze the effects of economic policies implemented in Turkey for the period after 2000. Therefore, firstly the theoretical and empirical literature has been done for economic policies, and then an econometric analysis was conducted to determine the effects of economic policies on macroeconomic indicators and the relationship between with each other. The study consists of three parts. In the first part, general information about economic policies is presented and some definitions were made. In the second part, theoretical debates for economic policies and macroeconomic models in open economy were examined. In the third section, the historical development of economic policies implemented in Turkey economy and empirical literature was reported and a general assessment has made with the findings obtained by using the VAR method. The results obtained from this study can be summarized as follows: monetary policy overrides about solving the inflation problem in Turkey economy in the period after 2000 but fiscal policy is more effective than monetary policy on the real economy. Additionally, a substituent feature between monetary and fiscal policy was appeared and it was observed that monetary policy located in a position following fiscal policy in terms of Turkey economy. Keywords. Monetary policy, Fiscal policy, Turkey, VAR Analysis. JEL. E52, E62, O53, C01. Highlights * Monetary policy is a priority policy about solving the inflation problem in Turkey economyin the period after 2000 and it is possible to say monetary policies are more effective than fiscal policies on affecting inflation rates. But fiscal policy is stronger than monetary policy in the context of affecting the real economy. * A substitutional property has emerged between monetary policy and fiscal policy and it was observed that monetary policy located in a position following fiscal policy in Turkey economy. * At the same time, the budget balance has not been shaped according to the monetary policy. That means the fiscal policy does not follow the monetary policy, on the contrary monetary policy follows fiscal policy in Turkey economy. This can be explained by the upright posture of fiscal policies in the period after 2000. * Government spending and developments in money supply affect the national income level almost equally. 1 † This summary depends on the PhD thesis which was completed by advisory of Assoc. Prof. Dr. Osman PEKER in Nazilli Faculty of Economics and Administrative Sciences, Department of Economics, in Adnan Menderes University. Thesis defence was made in 05/24/2016 to the PhD thesis jury and accepted. The original language is Turkish and the thesis is consisted of 265 pages. . +90 456 233 10 00 -2228 . mbolukbas@gumushane.edu.tr