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Intereconomics

, Volume 53, Issue 6, pp 316–319 | Cite as

On the Risk of a Sovereign Debt Crisis in Italy

  • Oliver HoltemöllerEmail author
  • Tobias Knedlik
  • Axel Lindner
Articles Public Debt
  • 29 Downloads

Abstract

The intention for the Italian government to stimulate business activity via large increases in government spending is not in line with the stabilisation of the public debt ratio. Instead, if such policy were implemented, the risk of a sovereign debt crisis would be high. In this article, we analyse the capacity of the Italian economy to shoulder sovereign debt under different scenarios. We conclude that focusing on growth enhancing structural reforms, would allow for moderate increases in public expenditure.

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Copyright information

© ZBW and Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  • Oliver Holtemöller
    • 1
    Email author
  • Tobias Knedlik
    • 2
  • Axel Lindner
    • 3
  1. 1.Department MacroeconomicsHalle Institute for Economic ResearchHalle (Saale)Germany
  2. 2.VolkswirtschaftslehreHochschule FuldaFuldaGermany
  3. 3.Department MacroeconomicsHalle Institute for Economic ResearchHalle (Saale)Germany

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