1980s austerity policy in Romania

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In the 1980s, severe austerity measures were imposed in the Socialist Republic of Romania by President Nicolae Ceaușescu in order to pay off the external debt incurred by the state in the 1970s. Beginning in 1981, the austerity led to economic stagnation that continued all throughout the 1980s, a "sui generis shock therapy" which lowered the competitiveness of the Romanian economy and decreased the amount of exports. Although the measure helped pay off the debt, the harsh austerity measures negatively affected the living standards of Romanians, increased shortages and contributed to the collapse of the Romanian Communist Party through the Romanian Revolution in December 1989, which culminated in the execution of Nicolae Ceaușescu.

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