In this paper we briefly review the evolution of the Italian economy in the post-war period, discussing the shift from a first period when fiscal policy was targeted - among other things - at full employment, to a later period when controlling inflation through a "foreign discipline" became the main policy target. We review critically the literature on the Italian productivity slowdown, suggesting that it neglects the role of aggregate demand, and of labor market reforms, on productivity. Finally, we discuss Eurozone imbalances, suggesting that Eurozone institutions adopt new rules to keep the interest rate low enough to make public debt sustainable, while using fiscal policy to stimulate growth.

Cesaratto, S., Zezza, G. (2019). What went wrong with Italy and what the country should fight for in Europe. In J.P. H. Herr (a cura di), Still time to save the Euro: a new agenda for growth and jobs with a focus on the Euro area's four largest countries (pp. 47-61). Berlino : Social Europe Publishing.

What went wrong with Italy and what the country should fight for in Europe

Sergio Cesaratto
;
2019-01-01

Abstract

In this paper we briefly review the evolution of the Italian economy in the post-war period, discussing the shift from a first period when fiscal policy was targeted - among other things - at full employment, to a later period when controlling inflation through a "foreign discipline" became the main policy target. We review critically the literature on the Italian productivity slowdown, suggesting that it neglects the role of aggregate demand, and of labor market reforms, on productivity. Finally, we discuss Eurozone imbalances, suggesting that Eurozone institutions adopt new rules to keep the interest rate low enough to make public debt sustainable, while using fiscal policy to stimulate growth.
2019
978-0-9926537-6-7
978-0-9926537-4-3
Cesaratto, S., Zezza, G. (2019). What went wrong with Italy and what the country should fight for in Europe. In J.P. H. Herr (a cura di), Still time to save the Euro: a new agenda for growth and jobs with a focus on the Euro area's four largest countries (pp. 47-61). Berlino : Social Europe Publishing.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11365/1067828