Economic Policy Questions
Austerity measures in economic policy refer to a set of policies implemented by governments to reduce public spending and decrease budget deficits. These measures typically involve cutting government expenditures, reducing public sector wages, increasing taxes, and implementing structural reforms to improve the efficiency of public services. The aim of austerity measures is to restore fiscal stability, reduce public debt, and promote economic growth in the long run. However, they often come with short-term economic challenges, such as reduced consumer spending and increased unemployment.