The Influence of Populist Parties in European Governments on Macroeconomic Policy (2008-2020)

The result of the study showed that when populist parties entered the governments of European countries from 2008 to 2020, offices are inclined to pursue an expansive fiscal policy. The response of the model was the increase in government spending and tax cuts. This is explained by the desire of middle-income voters to oppose austerity policies, which was the result of the economic crisis of 2008-2019. At the same time, analyzing the influence of populist parties on monetary policy, there was a lack of response to the formation of the interest rate for any specification of the model. There is also a lack of influence of parties in the "left-right" continuum on fiscal policy. An analysis of the literature showed that in “traditional” governments with a left-wing course, budget funds are spent on social programs more often than with the right orientation of classrooms. The research model has demonstrated that both left and right populists tend to spend more while entering the governments. Thus, the ideological characteristics of the right and left populist parties are not subject to the traditional division of parties in terms of socio-economic delimitation.