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The phrase "austerity policy" is correct and usable in written English.
It can be used when discussing economic measures aimed at reducing government deficits through spending cuts, tax increases, or a combination of both.
Example: "The government's austerity policy has sparked widespread protests among citizens who feel the cuts are too severe."
Alternatives: "fiscal restraint" or "budgetary austerity".
Exact(59)
"Austerity policy does not lead anywhere.
Germany is trapped in an austerity policy that it imposed across Europe".
Osborne, unlike his nominee Mark Carney, refuses to recognise that his austerity policy delayed the recovery.
"The austerity policy is allied with that," said Atkinson, an expert in gentrification and social exclusion.
Five years of austerity policy has done nothing to assuage that anxiety.
Nobel prize-winning economist Paul Krugman has attacked the government's austerity policy as "deeply destructive".
And on Tuesday, Olivier Blanchard, the fund's chief economist, warned that Britain was "playing with fire" with its austerity policy.
You'll recall that the European Union likewise pursued an aggressive austerity policy and ended up with a double-dip recession.
As a Briton, I object to Mr. Krugman's continual and inaccurate sneering at my government's austerity policy.
It is the precarious finances of the German banks that determine the harsh austerity policy towards Greece.
Similar(1)
But an anti-austerity policy would also be risky.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com