Year of Austerity

In the financial world, the word used to describe both last year, 2010, and this year 2011 is ‘austerity.’ Many countries faced debt crises and in response, governments have introduced tougher taxes and pay cuts.

Austerity, a 14th century word generally defined as “the quality or state of being austere” and “enforced or extreme economy,” actually means: “severe or strict in manner or attitude’ according to the Oxford English dictionary. The root word is the Greek word, austeros, or severe.