Austerity

02 May 2022

a set of economic policies, usually consisting of tax increases, spending cuts, or a combination of the two, used by governments to reduce budget deficits.

Example – Greece’s Parliament approves unpopular new austerity measures, agreed to as a condition of the ongoing EU-IMF bailout. The austerity measures forced the Greek government to cut spending and increase taxes. They cost 72 billion euros or 40% of GDP. As a result, the Greek economy shrank 25%. That reduced the tax revenues needed to repay the debt.

Copy link
Previous word Arbitrage Next word Bailouts

Thanks for your enrollment!

Our monthly investment review is waiting for you at pochta@mail.com

Don't miss investment news

Please enter your email to receive our monthly investment reviews.

    Name

    Email


    This website uses cookies. By using this website, you agree to their use.

    I understand More Information