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For all the talk about monetary austerity promoting creative destruction, it does not work that way.
The IMF advised fiscal and monetary austerity to help convince foreign money to stay put.
Its fiscal and monetary austerity, designed to lower debt and inflation, is unpopular.
The bulk of both fiscal and monetary austerity occurred immediately prior to the onset of the depression.
For all the talk that monetary austerity promotes the "creative destruction" necessary for the economy to recover, it does not work that way.
The most poignant example of the opposite was Britain in the 1920s which implemented both fiscal and monetary austerity in an effort to return sterling to its pre-war gold parity.
Similar(51)
World Bank or International Monetary Fund austerity packages in return for debt renegotiation are central to neoliberal programs.
Even the jewel of the region, Costa Rica, is reeling from the economic slowdown, magnified by International Monetary Fund austerity measures.
In 1989, a popular uprising against an International Monetary Fund austerity program resulted in the deaths of several hundred people and convinced Mr. Chavez and his co-conspirators that the system could no longer function.
Governments responded with monetary and fiscal austerity.
Can monetary policy safe austerity Britain from its slump?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com