FROM "GREAT DEPRESSION" TO "GREAT LOCKDOWN": THE "NEW NORMAL" ORDER

Abstract

History has witnessed many crises over the centuries. Exchange rate movements, overvalued assets, banks that went bankrupt overnight, and more. This time, it is a virus that changes the balances: Covid-19. Mankind is faced with a "threat" that teaches itself new habits, a new lifestyle, and new concepts. Covid-19 virus, which is at the top of the world agenda, brings the world to a new crossroads. The case, which was first detected in China on December 1, 2019, was evaluated as a disease only, preventing the predictions of economic effects and taking measures. Serious restrictions and measures that came into our lives with the virus have triggered severe contractions in the economies of many countries, especially in large world economies. The fact that this situation is not similar to the crises experienced in the past and that the uncertainties about when it will end still make the current situation more special. Based on past crisis examples, the research discusses the necessity of transition to a new global, political and economic system if the Covid-19 global epidemic continues for a long time. According to the data of the World Health Organization (WHO); As of October 2020, the global epidemic, in which more than 1 million people lost their lives all over the world, has caused effects in many areas such as life styles of countries, world views, value judgments, trade and production structures, and shopping habits. In this context, it is obvious that uncertainty and panic-induced costs have turned into a crisis in an economy dominated by lack of information, but in this crisis, control mechanisms regarding the process are shaped according to the course of the virus. After the Second World War, the "social state" order, which was applied until the end of the 1970s, is on the agenda again. In the current situation, while the "more liberalism" paradigm of the post-2008 Global Crisis loses its validity, fiscal policies should be put into effect in the medium and long term, and the spending and taxation policies should be changed. In particular, it is inevitable implementation of domestic currency reserves to stabilized the exchange rate in countries like Turkey that loses value against the monetary and fiscal policies to promote savings in order to prevent the depreciation of the domestic currency. In the short term, while the COVID-19 process has forced the world to work and life models based on remote access, new ideas and innovative methods are needed to finance recovery and manage this process. In the new world order should normally turnings world needs Turkey online world, the online world order that continues in these days of uncertainty regarding pandemic is likely to be a long term process.