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

In: The World Economy Towards Global Disequilibrium

Author

Listed:
  • 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.

Suggested Citation

  • Mario Baldassarri & Pasquale Capretta, 2007. "A Policy Mix to Re-Launch Growth under Conditions of Structural Equilibrium in Public Finance," Palgrave Macmillan Books, in: The World Economy Towards Global Disequilibrium, chapter 9, pages 289-294, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-59084-7_9
    DOI: 10.1057/9780230590847_9
    as

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