The Role of the Fiscal Policy in the Largest Financial Crises in the 21-st Century

Abstract

The world in 2008 was faced with the most diffi cult and the most complicated crisis, starting from the time of the Great Depression. The crisis increasing the aggregate demand and recovery of the fi nancial sector. The aim of this paper is to realize the most important aspect of the crisis: the role of fi scal policy in the present crisis, fi scal instruments (public revenues and public expenditures), their adequate combining and timely implementation, and the possible effects that occur in the pursuit of prudent and undisciplinated fi scal policy. Fiscal policy in terms of fi nancial crisis need to be implemented effectively.