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 Research Projects at the MPIfG

Making Sense of Italy’s Stagnation

Lucio Baccaro and Massimo D’Antoni (University of Siena)


 
Once a success story in comparative perspective, the Italian economy has been stagnating for the past twenty-five years. This project aims to understand the sources of Italy’s malaise. Dominant explanations fall in two camps: they emphasize some long-standing “plagues” blighting the Italian economy and society or underscore the insufficient liberalization of the Italian economy. Drawing on the growth model perspective, this project studies the unintended consequences of the “external constraint” strategy (voluntarily limiting the country’s policy-making discretion by tying it tightly to the European mast) on both aggregate demand and aggregate supply in Italy. Project duration: October 2019 to March 2021.
 

 
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