Difference between revisions of "Austere"
(Created page with 'File:lighterstill.jpgright|frame ==Origin== [http://nordan.daynal.org/wiki/index.php?title=English#ca._1100-1500_.09THE_MIDDLE_ENGLISH_PERIOD Middle E...') |
m (Text replacement - "http://" to "https://") |
||
| (2 intermediate revisions by 2 users not shown) | |||
| Line 2: | Line 2: | ||
==Origin== | ==Origin== | ||
| − | [ | + | [https://nordan.daynal.org/wiki/index.php?title=English#ca._1100-1500_.09THE_MIDDLE_ENGLISH_PERIOD Middle English], from Anglo-French, from [[Latin]] austerus, from [[Greek]] austēros harsh, severe; akin to Greek hauos dry |
| − | *[ | + | *[https://en.wikipedia.org/wiki/14th_century 14th Century] |
| + | |||
==Definitions== | ==Definitions== | ||
*a : stern and cold in [[appearance]] or [[manner]] | *a : stern and cold in [[appearance]] or [[manner]] | ||
| Line 14: | Line 15: | ||
In [[economics]], '''austerity''' is when a [[government]] reduces its spending and/or increases user fees and taxes to pay back creditors. Austerity is usually required when a [[government]]'s fiscal deficit spending is believed to be unsustainable. | In [[economics]], '''austerity''' is when a [[government]] reduces its spending and/or increases user fees and taxes to pay back creditors. Austerity is usually required when a [[government]]'s fiscal deficit spending is believed to be unsustainable. | ||
==Reasons for taking austerity measures== | ==Reasons for taking austerity measures== | ||
| − | Austerity measures are typically taken if there is a [[perceived]] threat that [[government]] cannot [[honor]] its [[debt]] liabilities. Such a situation may arise if a government has borrowed in foreign currencies which they have no right to issue or they have been legally forbidden from issuing their own [[currency]]. In such a situation banks may lose [[trust]] in [[government]]'s [[ability]] and/or willingness to pay and refuse to roll over existing [[debts]] or demand exorbitant interest rates. In such situations, inter-governmental [[institutions]] such as the [ | + | Austerity measures are typically taken if there is a [[perceived]] threat that [[government]] cannot [[honor]] its [[debt]] liabilities. Such a situation may arise if a government has borrowed in foreign currencies which they have no right to issue or they have been legally forbidden from issuing their own [[currency]]. In such a situation banks may lose [[trust]] in [[government]]'s [[ability]] and/or willingness to pay and refuse to roll over existing [[debts]] or demand exorbitant interest rates. In such situations, inter-governmental [[institutions]] such as the [https://en.wikipedia.org/wiki/International_Monetary_Fund International Monetary Fund] (IMF) typically come in and demand austerity [[measures]] in exchange for functioning as a lender of last resort. When the IMF requires such a [[policy]], the terms are known as 'IMF conditionalities'. |
==Typical effects== | ==Typical effects== | ||
Development projects, welfare, and other [[social]] spending are common programs of spending for cuts. Taxes, port and airport fees and train and bus fares are common sources of increased user fees. | Development projects, welfare, and other [[social]] spending are common programs of spending for cuts. Taxes, port and airport fees and train and bus fares are common sources of increased user fees. | ||
| − | In many cases, austerity measures have been [[associated]] with short-term declines in [[standard of living]] until economic conditions improved and fiscal [[balance]] was achieved.[ | + | In many cases, austerity measures have been [[associated]] with short-term declines in [[standard of living]] until economic conditions improved and fiscal [[balance]] was achieved.[https://en.wikipedia.org/wiki/Austerity] |
[[Category: Economics]] | [[Category: Economics]] | ||
Latest revision as of 23:45, 12 December 2020
Origin
Middle English, from Anglo-French, from Latin austerus, from Greek austēros harsh, severe; akin to Greek hauos dry
Definitions
- a : stern and cold in appearance or manner
- b : somber, grave <an austere critic>
- 2: morally strict : ascetic
- 3: markedly simple or unadorned <an austere office> <an austere style of writing>
- 4: giving little or no scope for pleasure <austere diets>
- 5: of a wine : having the flavor of acid or tannin predominant over fruit flavors usually indicating a capacity for aging
Description
In economics, austerity is when a government reduces its spending and/or increases user fees and taxes to pay back creditors. Austerity is usually required when a government's fiscal deficit spending is believed to be unsustainable.
Reasons for taking austerity measures
Austerity measures are typically taken if there is a perceived threat that government cannot honor its debt liabilities. Such a situation may arise if a government has borrowed in foreign currencies which they have no right to issue or they have been legally forbidden from issuing their own currency. In such a situation banks may lose trust in government's ability and/or willingness to pay and refuse to roll over existing debts or demand exorbitant interest rates. In such situations, inter-governmental institutions such as the International Monetary Fund (IMF) typically come in and demand austerity measures in exchange for functioning as a lender of last resort. When the IMF requires such a policy, the terms are known as 'IMF conditionalities'.
Typical effects
Development projects, welfare, and other social spending are common programs of spending for cuts. Taxes, port and airport fees and train and bus fares are common sources of increased user fees.
In many cases, austerity measures have been associated with short-term declines in standard of living until economic conditions improved and fiscal balance was achieved.[1]
