By Mario Baldassarri

Over the last few a long time, fiscal improvement in Italy has been tumultuous and, in lots of methods, contradictory. It was once in the course of those years that Italy grew to become a robust and smooth business strength and ranked one of the six such a lot constructed international locations on the earth. This booklet analyzes Italian business improvement and commercial fiscal coverage, and defines Italy's strategic place as she faces the unconventional foreign adjustments of the Nineteen Nineties.

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Extra resources for Industrial Policy in Italy, 1945–90

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Closer scrutiny of the industrial policy debate of the period reveals the chasm between the school of thought in favour of planning and the reality of an international market that cannot be compared with the conditions which prevailed during the prewar period. Expressed in another way, the divergence between "intellectual vision" and real economic developments has been referred to as schizophrenia. Nonetheless, examination of the measures adopted in some cases shows a surprising ability to provide concrete answers for the problems plaguing Italian industry.

De Cecco's observation that Keynes was an advocate of free enterprise (for our purposes, a Keynesian macroeconomic policy is naturally accompanied by a free-market structural policy) can be reversed: it is possible to be macroeconomically anti-Keynesian and microeconomically interventionist. Is this combination only a possibility, or does the evidence exist to support it? Examples, rather than statistical analyses, can be found in the German economy, and perhaps in the Japanese system as well. To paraphrase De Cecco, the peculiarity of this combination, so unlike the dichotomous division, may have caused German economic policy to be considered more of a free market than it actually is.

Other governments, such as Germany, adopt policies which officinally stimulate free enterprise, but are actually performed within the context of a corporatist culture; where consultation is usual, externalities and dynamic relationships are naturally taken into account. One extremely interesting combination is European policy during the late 1970s and 1980s involving the creation of the European Monetary System and the Internal Market. Macroeconomic Policies and Industrial Policies 27 Macroeconomically, the anti-inflationary strategy of the Bundesbank dominated monetary policy.

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