The policy response to macroeconomic and fiscal imbalances in Italy in the last fifteen years

Antonio Bassanetti, Matteo Bugamelli, Sandro Momigliano, Roberto Sabbatini () and Francesco Zollino
Additional contact information
Antonio Bassanetti: Bank of Italy, Directorate General for Economics, Statistics and Research
Francesco Zollino: Bank of Italy, Directorate General for Economics, Statistics and Research

PSL Quarterly Review, 2014, vol. 67, issue 268, 55-103

Abstract: This paper reviews the main macroeconomic trends and the debate on policy priorities in Italy since the advent of EMU. It argues that, in the decade up to the outbreak of the global crisis (1998-2007), in Italy the reform process came to a virtual standstill and fiscal policy was inconsistent with the commitments taken on at the European level. The paper suggests that the lack of resolute policy reactions to the institutional dysfunctions and structural weaknesses was due to the fragmentation of the political constituency, while a variety of favourable contingent factors masked the difficulties of the productive system. Had Italy been better positioned in terms of public finances and structural features in 2007, some of the adverse effects of the global and sovereign crises would have been avoided.

Keywords: EMU; fiscal policy; macroeconomic imbalances; global crisis (search for similar items in EconPapers)
JEL-codes: E6 H3 K0 N1 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/11985/11825 (application/pdf)

Related works:
Working Paper: The policy response to macroeconomic and fiscal imbalances in Italy in the last fifteen years (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:psl:pslqrr:2014:13

Ordering information: This journal article can be ordered from
http://www.pslquarterlyreview.info

Access Statistics for this article

PSL Quarterly Review is currently edited by Alessandro Roncaglia and Carlo D'Ippoliti

More articles in PSL Quarterly Review from Economia civile
Bibliographic data for series maintained by Carlo D'Ippoliti ().