The Impact of Neoliberal Policies to Global Crisis

After 1980s, which is named as neoliberal period, financial crises occured more oftenlycompared to the previous years. The finacial crisis which started in 2007 in the United States, transformed to a global crisis in 2009 that showed effects worlwide. This crisis has been recorded as the deepest crisis since the 1929 Great Depression. According to the economic freedom index which is used to determine this difference, it has been determined that the countries which have a higher economic freedom level have been affected more by the crisis. In the regression analysis applied in this study it has been found out that the countries which have higher pre-crisis levels of economic freedom, current account deficit (% GDP) and rate of domestic credit (% GDP) have been affected deeper by the crisis.