Giovanni Vecchi: “We are in deflation, as in 1959, however, the boom then, is a unique” – The Republic

ROME. The comparison with 1959 is not in the foot. John Old, a professor of political economy at the University of Rome Tor Vergata and an expert on inequality at the world Bank, do not see any parallelism with a year, the ’59, which part of that economic boom, which the professor defines as “unique” today.

Italy was that then?
“A Country that was growing, that for the case entered deflation, and it came out very well, with the boom. The Italy of today, if we want to do a comparison is more like that of the first half of the Thirties”.

A comparison heavy.
“we Were a poor Country and in a deflation, but the phenomenon lasted for years and came up with the public expenditure, colonialism, and war”.

Two roads unlikely today.
“there is No doubt. But get out of it today, it will be more difficult then for many reasons. Because the Country is structurally weak, are 15 years of age who is not growing and therefore even a small shock deflattivo can be dangerous on the fabric fragile. We can’t rely on a policy of public expenditure, nor on monetary policy, which is decided by the Ecb. You have to start with in terms of competitiveness, starting from the education in which we are really low compared to other advanced Countries”.

A critique of the Good school?
“No. The government is not to blame, no more at least than are the italians, who attempt to defend himself, looking for niches of privileges or of income. When I speak of these things I speak of values, you can not be afraid to compete, because who is good has no fear. The Country must open up the sails, and bury the privileges, pensions, corruption. Only in this way can Italy start again”.

What are the effects of deflation?
“Increases the social inequality and penalizes those who owe, that is a person or a company. Applies to all: a family can postpone the purchase of a car, entrepreneur, investment and the economy, so instead of growing goes back. And they are the poorest, those who live to work, when they have to pay the highest price”.

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Interviews economy

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Old