A note on the Italian public debt

Abstract

The work deals with the current level and growth rate of Italy’s public debt. First, by looking at the evidence available, the author establishes the causes of the rapid growth in public debt, and the extent to which the Italian experience has been shared by other European countries. The issue of dynamic instability is then addressed. Finally, the author attempts to answer the question whether a fiscal contraction now is indeed a reasonable policy option. JEL: H63

Keywords

• Italy
• public debt
• dynamic instability
• policy
• fiscal contraction