22 Pages Posted: 30 Apr 2012
Date Written: April 30, 2012
Austerity is a concept that is often used in the public debate. It refers to fiscal policy measures that reduce government spending and raise taxes for the purposes of closing a government budget deficit. This paper analyzes the concept in the context of the current European economic crisis and explains the limited options for policies to counter the negative effects of austerity.
Keywords: Macroeconomics, Fiscal policy, The Welfare State, Budget deficit
JEL Classification: D60, E60, H00, H11, H50, H59, H60, H61, H62, H63
Suggested Citation: Suggested Citation