AusterityFinancial Markets HistoryPolicy of reducing government spending and/or raising taxes to reduce budget deficits.Learn about this termUnit 06: bond market sovereign debtFinancial Markets HistoryUnit 12: credit cycles instabilityFinancial Markets HistoryRelated TermsBond vigilanteAn investor who sells government bonds to punish policies th...TroikaThe European Commission, European Central Bank, and Internat...Sovereign defaultWhen a government fails to make scheduled debt payments. Unl...