In line with our previous work, we simulate the effects of a policy measure designed to achieve a higher output gap. By increasing Italy’s participation rate we aim at finding a greater stance for fiscal policy that would allow for the deficit-financing of a minimum income conditional to active job-seeking. We also consider feasible effects on real output.
We suggest a policy measure, consistent with UE budget constraints, which aims to achieve a higher output gap through an increase in the participation rate: the greater stance for fiscal policy would allow for the possibility to finance a minimum income (conditional to active job-seeking). An empirical example is provided for the Italian case.
Numerous commentators maintain that the 2015 Italian budget is “expansionary”. This article however shows that it does not have a Keynesian character and presents uncertain results. The government’s strategy is to support families’ available income by increasing public funding and cutting fiscal pressure. The analysis also shows that the success of this budget is threatened because it depends strongly on the families’ willingness to spend the greater income made available.
–
–
–
–
–
economiaepolitica.it utilizza cookies propri e di terze parti per migliorare la navigazione.
