Austerity policies are those which aim to reduce government debt through a combination of higher taxes and/or lower government spending. These austerity policies could also be termed deflationary fiscal policy. ‘Austerity’ implies a period of low growth, low incomes and high unemployment.
Recently, the UK and several European economies have pursued austerity policies, despite being in a recession.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertiseSubscribe