Using the simple arithmetic of government budget constraint, we perform an illustrative analysis on the Italian case, investigating the consequences on the main public finance aggregates of the adoption of a fiscal policy rule responding to past real debt/GDP ratio. Such a rule, firmly grounded in the economic analysis, would allow the reduction of Italy's outstanding stock of debt without requiring the strict adherence to the 3% criterion for deficit/GDP ratio, as prescribed by SGP. We perform a forecasting exercise under five alternative scenarios and analyze the details of a structural debt reduction strategy with alternative yearly step.

Marattin L., Marzo M. (2009). A Note on the (Un)Pleasant Arithmetic of Fiscal Policy: the Case of Italian Public Debt. ECONOMIC NOTES, 38, 169-183 [10.1111/j.1468-0300.2009.00212.x].

A Note on the (Un)Pleasant Arithmetic of Fiscal Policy: the Case of Italian Public Debt

MARATTIN, LUIGI;MARZO, MASSIMILIANO
2009

Abstract

Using the simple arithmetic of government budget constraint, we perform an illustrative analysis on the Italian case, investigating the consequences on the main public finance aggregates of the adoption of a fiscal policy rule responding to past real debt/GDP ratio. Such a rule, firmly grounded in the economic analysis, would allow the reduction of Italy's outstanding stock of debt without requiring the strict adherence to the 3% criterion for deficit/GDP ratio, as prescribed by SGP. We perform a forecasting exercise under five alternative scenarios and analyze the details of a structural debt reduction strategy with alternative yearly step.
2009
Marattin L., Marzo M. (2009). A Note on the (Un)Pleasant Arithmetic of Fiscal Policy: the Case of Italian Public Debt. ECONOMIC NOTES, 38, 169-183 [10.1111/j.1468-0300.2009.00212.x].
Marattin L.; Marzo M.
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/88300
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 3
  • ???jsp.display-item.citation.isi??? ND
social impact