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Italy: Quantifying the Benefits of a Comprehensive Reform Package

Italy: Quantifying the Benefits of a Comprehensive Reform Package PDF Author: Michal Andrle
Publisher: International Monetary Fund
ISBN: 1484348087
Category : Business & Economics
Languages : en
Pages : 17

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Book Description
This paper seeks to quantify the net benefits of a comprehensive reform package aimed at addressing Italy’s inter-related challenges. Specifically, it simulates the growth and competitiveness effects of a package of fiscal, financial, wage bargaining, and other structural reforms. Credible implementation of such a package yields substantial mediumterm dividends at negligible near-term growth costs. Real GDP growth is estimated to be substantially higher over the medium term, while the real effective exchange rate depreciates notably.