Not a good New Year’s resolution: the 2016 coming fiscal adjustment

Rethinking Bretton Woods | Sun, Dec 20, 2015


Two new studies find that next year will mark the beginning of a second major period of contraction of expenditures globally in pursuit of austerity measures (e.g. reductions in wages, social safety nets and health and education subsidies). While the global financial crisis of 2008 seems far behind, this research shows that its effects are not, and budget reductions, as a percentage of Gross Domestic Product, are expected to impact 132 countries and hover around this level until 2020.

The good news, the authors state, is that austerity is not inevitable: alternatives to adjustment exist in all countries, if only the political will to implement them can be found.

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