Casadio, Paolo and Paradiso, Antonio and Rao, B. Bhaskara (2011): The dynamics of Italian public debt: Alternative paths for fiscal consolidation.
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This paper analyses possible targets for the Italian debt-to-GDP ratio with a small macroeconomic model. The role of international macroeconomic variables such as the US GDP growth, prices of raw materials, EUR/USD exchange rate, and ECB monetary policy stance and domestic policy instruments is analyzed in the debt dynamics. We find that external conditions play a fundamental role for the Italian fiscal consolidation. To reach a target of 100% of debt-to-GDP ratio by 2020, a further growth sustaining policy has to be implemented.
|Item Type:||MPRA Paper|
|Original Title:||The dynamics of Italian public debt: Alternative paths for fiscal consolidation|
|Keywords:||Debt to GDP Ratio, Italian Economy, International Factors, SUR.|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy
H - Public Economics > H6 - National Budget, Deficit, and Debt > H68 - Forecasts of Budgets, Deficits, and Debt
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C30 - General
H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt
|Depositing User:||Antonio Paradiso|
|Date Deposited:||04. May 2011 06:42|
|Last Modified:||12. Feb 2013 17:15|
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