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This paper seeks to quantify the net benefits of a comprehensive reform package aimed at addressing Italyโs 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.
Genre: Business & Economics / Economics / Macroeconomics (fancy, right?)
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