Ramifications of the World Financial Crises on GCC and the Role of Fiscal Policy


A clear fact for the GCC countries is the dominance of the oil sector in the economies of those countries, especially with regard to the elements of the budget, so it used to link the level of public expenditure with the expected revenue from the oil sector in the past, but in the recent global financial crisis 2007, In a different context, the correlation of fiscal policy, particularly the agreement, reflected strong links to these crises through expansionary policies in the opposite direction of the economic cycle. This study attempts to find out the reasons behind this policy and its role in dealing with the deflation of the GCC countries The previous study concluded that the previous crises were being dealt with by a policy of deflationary spending, that is, the fiscal policy was affected by the economic activity and is ineffective. As for dealing with the repercussions of the recent financial crisis, the fiscal policy followed is described as influential in economic activity, But its impact is going abroad