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TERRA ECONOMICUS

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  • Socio-economic public policy in times of crises: Historical overview and some implications

Socio-economic public policy in times of crises: Historical overview and some implications


TERRA ECONOMICUS, , Vol. 22 (no. 1),

The paper examines economic reforms that various countries (the USA, the UK, Germany, France and Japan) were implementing over the past 100 years in order to overcome global economic crises (the Great Depression, the oil crisis of 1973–1975, the financial crisis of 2008 and the Covid-19 recession). Authors suggest that anti-crisis measures include tactical and strategic components. The tactical component creates conditions for eliminating negative effects of recessions, whereas the strategic component unlocks potential for future economic development. As the evidence suggests, the countries that invest in research and development during economic crises become highly successful in strengthening their positions on the world stage. The paper gives an overview of the most popular macroeconomic policy tools used in times of crises. These are the key rate, open market operations, currency devaluation, government expenditure, tax rates as well as subsidies to households and firms. We show that macroeconomic policy can be contractionary and expansionary. Contractionary policy aims at combating demand-pull inflation, whereas expansionary policy is implemented to increase aggregate output and income. It is important to note that during global recessions monetary policy is usually secondary to fiscal policy. The paper tracks the evolution of labor relations from one crisis to another. We emphasize the increasing importance of public funding of workers’ retraining and changes in labor legislation providing new forms and modes of employment.
Citation: Dementiev V.E., Ustyuzhanin V.L., Ustyuzhanina E.V. (2024). Socio-economic public policy in times of crises: Historical overview and some implications. Terra Economicus 22(1), 6–19 (in Russian). DOI: 10.18522/2073-6606-2024-22-1-6-19


Keywords: economic crisis; monetary policy; fiscal policy; labor relations

JEL codes: E60, F00, J08

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606