The dynamics of Italian public debt: Alternative paths for fiscal consolidation

Paolo Casadio, Antonio Paradiso () and B. Rao

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyses possible targets for the Italian debt-to-GDP ratio with a small macroeconomic model. The role of international macroeconomic variables such as the US GDP growth, prices of raw materials, EUR/USD exchange rate, and ECB monetary policy stance and domestic policy instruments is analyzed in the debt dynamics. We find that external conditions play a fundamental role for the Italian fiscal consolidation. To reach a target of 100% of debt-to-GDP ratio by 2020, a further growth sustaining policy has to be implemented.

Keywords: Debt to GDP Ratio; Italian Economy; International Factors; SUR. (search for similar items in EconPapers)
JEL-codes: C30 E62 H63 H68 (search for similar items in EconPapers)
Date: 2011-04-21
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (3)

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