11. Austerity, a Threat to Democracy?
- Author:
- Lorenzo Bini Smaghi
- Publication Date:
- 03-2014
- Content Type:
- Journal Article
- Journal:
- The International Spectator
- Institution:
- Istituto Affari Internazionali
- Abstract:
- Austerity measures are painful. This is why they are unpopular. It is also the reason why governments tend to postpone them until they become unavoidable. They become unavoidable when financial markets raise doubts about the solvency of the country and interest rates on the public debt rise sharply, calling into question the government's ability to refinance its debt. At that point, citizens understand that unless tough austerity measures are adopted the situation might get much worse. They are ultimately willing to accept austerity as the least worse solution.
- Topic:
- Government and Reform