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Back to the long-run: the “Development Operation” as a supply-side policy by the Italian Industrial Association during the Seventies

Dafano, Alessandro (2016): Back to the long-run: the “Development Operation” as a supply-side policy by the Italian Industrial Association during the Seventies.

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Abstract

The aim of this paper is to stress the proposal made by the Italian Industrial Association against the stagflation during the Seventies, labeled “Development Operation”, which tried to give Italy a long-run growth path, through a strong reduction of public debt, boosting the supply-side in order to gain more productive independence; all of this in close connection with the European Community framework and in line with IMF/OECD directives. Moreover, this policy statement provided for a synthesis of different schools and joined the crowding-out debate occurring at that time in Italy.

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