On Monday 22 January 2018 at 17:00 in the Aula Toti – Viale Romania 32 – of the Luiss Guido Carli will be held the presentation of the first issue of the renewed magazine Economia Italiana.
The Review aims to develop the analysis on the main economic policy issues relevant to the country for
fuel an informed debate in public opinion.
On this occasion, a research on fiscal policies will be announced: "Can fiscal discipline be counterproductive?" of which we offer you a summary:
“The experience of the Great Recession has led some to argue that fiscal discipline can be counterproductive in the sense that it can worsen, rather than improve, the fiscal outlook. It is argued in this paper that fiscal discipline is a necessary ingredient of any fiscal consolidation plan.
Alternative propositions, such as those that argue that tax discipline is counterproductive, prove fundamentally untenable under a standard Keynesian model, in which national income is demand-driven; are theoretically possible, but empirically implausible, if we take into consideration the 'supply side' effects that can be induced by policies to support demand.
However, there may be special cases of severe recessions where restrictive fiscal policies have an effect
debt-to-GDP ratio perverses lasting several years; this circumstance can represent a serious challenge for policymakers. Furthermore, in deep recessions the hysteresis effects of policies may be important, suggesting that, in some cases, temporary expansionary measures may be appropriate and may, in part, be self-financing.
