Public sector budget austerity is considered another aspect of financialization of markets due to the increased influence of financial institutions on public sector financial and nonfinancial decisions.

Question

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Austerity measures in the public sector are often driven by financial institutions and their demands for fiscal responsibility and balanced budgets. This can be seen as a form of financialization, where the priorities and decisions of financial markets and institutions have a greater influence on broader economic and social policies.

Public Sector Budget Austerity Is Considered Another Aspect of Financialization