Abstract:AbtractThe EMU assigns a very marginal role to economic policy and relies on the leading idea that, if prices are kept constant, there will be an automatic convergence towards long-run equilibrium income. These beliefs represent the theoretical underpinnings of fiscal and monetary policy strategies in Europe. In order to highlight the weakness of these foundations, the paper evaluates empirically the effects of public expenditure and interest rate setting on equilibrium income in Italy from 1998 to 2008. The a… Show more
This study describes the long path that allowed Italy to give up the traditional policy of high wages-high inflation-devaluation of the national currency
This study describes the long path that allowed Italy to give up the traditional policy of high wages-high inflation-devaluation of the national currency
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