Tough economic policy
Rigid economic policy is an inflexible economic policy that manifests itself in the government's strict adherence to a previously developed economic course, despite the expediency of its correction [Економічна енциклопедія].
The essence of such a policy consists of a sharp reduction of social costs to meet the needs of the population, namely, in the cessation or significant reduction of the payment of salaries, pensions, and social assistance, and with it an increase in tax rates.
At the current stage of the development of market relations, there is an opinion that contradicts the effectiveness of such a political model. Opponents of the austerity policy justify their point of view as follows: this policy provokes the presence of deflationary processes in the country and does not contribute to the country's recovery from the crisis. Despite this, the policy of austerity is still carried out for the purpose of state control. But at the same time, it is oriented not toward commercial interests, but toward political ones. This policy should be carried out with the aim of filling the budget with financial means due to the increase of taxes at all levels, as well as with the aim of preserving the euro as a single European currency. Often, such processes are accompanied by state regulations on freezing the movement of financial resources within the country and beyond.
Економічна енциклопедія: У трьох томах. Т. 1. / Редкол.: …С. В. Мочерний (відп. ред.) та ін. – К.: Видавничий центр “Академія”, 2000. – 864 с.
Tough economic policy. Tvir.biographiya. Retrieved from: https://tvir.biographiya.com/zhorstka-ekonomichna-politika/