EMPIRICAL INSIGHTS: UNRAVELING THE INTERPLAY OF FISCAL SUSTAINABILITY AND MACROECONOMIC STABILITY IN TURKEY

Abstract

In the contemporary global landscape, characterized by widespread implementation of free market economies, the interconnection of countries and markets through globalization and technological advancements has given rise to diverse economic balances, particularly between emerged and emerging economies. These nuances in economic equilibrium are not only observable within these categories but also manifest variances among individual countries. Amidst this intricate web of economic dynamics, the preservation of macroeconomic balance emerges as a crucial consideration, giving impetus to the overarching concept of sustainability.

Sustainability, a term frequently invoked in economic discourse, lacks a singular, clear-cut definition within the economics literature. Broadly conceived, it encapsulates the idea of ensuring the continuity of the economy and fostering adequate sufficiency to sustain this continuity. This encompasses not only the stability of individual macroeconomic indicators but also the intricate balance and compatibility existing among them. The genesis of economic sustainability is closely tied to the concept of fiscal sustainability, marking its initial foray into the discourse.

As countries grapple with the challenges and opportunities presented by the globalized economy, the pursuit of sustainability extends beyond mere economic stability to encompass the intricate interplay between macroeconomic indicators. This paper delves into the multifaceted dimensions of sustainability, aiming to unravel its complexities and provide insights into the evolving nature of economic equilibrium in both emerged and emerging economies. Through an exploration of the historical roots in fiscal sustainability, the paper seeks to shed light on the broader implications and applications of sustainability in the contemporary economic landscape