Please briefly summarize and explain what “austerity” means in this reading

Exercise 1:
“Second, in all these cases, the main instruments of austerity were large currency
devaluations and agreements with labor unions to control prices so that the devaluations’
effects were not eaten away by import inflation. That is, if a country is trying to get a
boost from exporting with a cheaper currency, it does not want the cost advantage it has gained
from the devaluation to be negated by wage increases, so it strikes a deal with the unions
to stop that from happening. This, of course, is possible only in countries that have unionized
large parts of their work forces. Given this, these cases hardly provide evidence that austerityinspired confidence leads to growth.”
1) Please briefly summarize and explain what “austerity” means in this reading
2) What is its objective of the main instruments of austerity?
3) Why was the austerity applied or used in this reading or in this case?

Exercise 2:
1) Again, briefly summarize and explain the statement, paragraphs or reading below.
From the perspective of the IS curve