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The dynamics of Italian public debt : alternative paths for fiscal consolidation

  • Paolo Casadio
  • , Antonio Paradiso
  • , B. Bhaskara Rao

    Research output: Contribution to journalArticlepeer-review

    12 Citations (Scopus)

    Abstract

    This article 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 European Central Bank (ECB) monetary policy stance and domestic policy instruments is analysed 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.
    Original languageEnglish
    Pages (from-to)635-639
    Number of pages5
    JournalApplied Economics Letters
    Volume19
    Issue number7
    DOIs
    Publication statusPublished - 2012

    UN SDGs

    This output contributes to the following UN Sustainable Development Goals (SDGs)

    1. SDG 17 - Partnerships for the Goals
      SDG 17 Partnerships for the Goals

    Keywords

    • Italy
    • debts_public
    • economic development
    • fiscal consolidation
    • fiscal policy
    • foreign exchange rates
    • gross domestic product
    • macroeconomics

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