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A Modest Proposal For Augmenting The Gross Domestic Product Of Italy, Allowing Greater Public Spending, Employment, And Graft

Fenoaltea, Stefano (2018): A Modest Proposal For Augmenting The Gross Domestic Product Of Italy, Allowing Greater Public Spending, Employment, And Graft.

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Abstract

Italy’s economy is stagnating, but a fiscal stimulus is ruled out by the Maastricht-limited deficit/GDP ratio. This paper presents a modest proposal for loosening the constraint on public spending by augmenting Italy’s female labor-force participation rate and therewith Italy’s GDP. Additional public spending would be popular, as it would increase employment; it would also be politically viable, as Italy’s elected and appointed officials would welcome the opportunity for increased graft.

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