Difference between revisions of "Austerity"
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[[Category:The Cultural Diplomacy Dictionary]] | [[Category:The Cultural Diplomacy Dictionary]] | ||
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| + | == External Links and References == | ||
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| + | * [http://www.nytimes.com/2013/05/13/opinion/how-austerity-kills.html?pagewanted=all&_r=1& How Austerity Kills- NY Times] | ||
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| + | * [https://www.google.de/search?q=austerity+&oq=auster&aqs=chrome.0.69i59j69i57j0l4.1142j0j7&sourceid=chrome&espv=2&es_sm=93&ie=UTF-8#q=austerity+in+europe&revid=983980467 Financial Times - Austerity in Europe] | ||
Latest revision as of 14:55, 10 April 2014
Austerity[edit]
Austerity measures are policies used by governments to reduce deficit in times of economic hardship. These policies are usually either tax increases or spending cuts, or a combination of both. They tend to be implemented after economic crises such as recessions when it is likely a government will not be able to honor its debt repayments. Austerity measures are sometimes used as a condition for an organization or country to lend a government facing financial difficulties bail-out money. For example, the International Monetary Fund (IMF) and the EU made it a requirement for Greece to impose austerity measures before it loaned money to help it recover. If austerity measures are too focused on short-term growth, they can in fact slow economic growth and reduce employment. They can also lead to a decline in the standard of living, which occurred in Greece and led to widespread protests.
