Politiche di sostegno della domanda in presenza di elevato debito pubblico.(Policies to Sustain Aggregate Demand in Presence of High Public Debt)

This article presents an economic policy proposal, aiming at stimulating the growth of the Italian economy over a period of unsatisfactory performance and limited possibility to expand the government expenditure due to the high level of public debt. The basic idea is a Keynesian one: using fiscal incentives to increase the consumption/income ratio of the private sector. In this way private action may become a substitute for (impossible) government action. A simulation of the envisaged incentive policy by means of an econometric model of the Italian economy (Prometeia model) helps estimate the likely effects of the proposal. JEL: E61, E62, H31