The Macroeconomics of the Pension Fund Reforms and the case of the severance pay reform in Ital

Abstract - The controversial saving-investme nt relationship is central to m acroeconomics in general, but in this capacity – perhaps less evidently – it is also centr al to the macroeconomics of pension reforms. Bearing this in mind, in this paper we shall review the ma in issues concerning these reforms and examine the recent attempt to boost the fully funded component of the pension system in Italy by employing the resources accumulated by firms on behalf of workers within th e ‘Trattamento di Fine Rapporto’ (severance pay) scheme.