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A new political economy approach for the economic crisis

Giuseppe Vitaletti ()
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Giuseppe Vitaletti: Tuscia University, Italy

Working papers from Società Italiana di Economia Pubblica

Abstract: This paper formulates and discusses the hypothesis of a long run unbalance between Saving and Investment. Various remedies are proposed for such a problem, in the actual situation of economic crisis, depending on such unbalance. Among them there are: an agreement at G20 political level, for the structural equilibrium of single countries balances of trade; at the same political level, understandings aimed at making real interest tend to zero structurally; the option for a very high ratio between public debt and GDP; the conditional measures which reduces the growth of public debt, and allows, at a later time, the target of stabilisation of the ratio between Debt and GDP.

Keywords: crisis; foreign commerce; public debt; public deficit; rents (search for similar items in EconPapers)
JEL-codes: E E2 E6 F (search for similar items in EconPapers)
Date: 2015-01
New Economics Papers: this item is included in nep-ias and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ipu:wpaper:18

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