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A Policy Mix to Re-Launch Growth under Conditions of Structural Equilibrium in Public Finance

  • Mario Baldassarri
  • Pasquale Capretta

Abstract

The negative economic cycle that developed between 2004 and 2005 brought Italy down to a rate of growth of just above zero at the end of 2005. In the absence of economic policies, the Italian economy is expected to recover at rather moderate rates of growth during the next three years 2006–2008 (1.5% a year) and a bit faster (1.6%) in 2009. Under these conditions, with no interventions, net borrowing will settle well above 3% of GDP during the whole period. Other projections that were made during the second half of 2005 by several economic research institutes show an even more modest recovery with growth at approximately 1% in 2006. Accordingly, the outlook for the public deficit and the consequent financial imbalance will even be worse.

Keywords

Current Account Deficit Exchange Rate Policy Current Surplus Italian Economy Interest Rate Differential 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Mario Baldassarri & Pasquale Capretta 2007

Authors and Affiliations

  • Mario Baldassarri
  • Pasquale Capretta

There are no affiliations available

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