Austerity – Definition

Austerity – Definition
Austerity is a term from economics that describes a policy where nations reduce living standards, curtail development projects, and generally shift the revenue stream out of the physical economy, in order to satisfy the demands of creditors. Typically, private banks, or institutions like the International Monetary Fund (I.M.F.), will demand an “austerity policy” from a national government, as a condition for re-financing loans that are coming due. This might involve cutting food or fuel subsidies, underfunding public infrastructure (transport, education, health care, water and power management), or rationing. When these demands are made by the I.M.F., they are known as I.M.F. conditionalities. 
Just so your aware!

This entry was posted in Computers and Internet, Education, News and politics, Organizations. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s