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A note on Italy's current account sustainability: 1861-2010

Author

Listed:
  • Alberto Rinaldi

    (University of Modena and Reggio Emilia and RECent)

  • Barbara Pistoresi

    (University of Modena and Reggio Emilia and RECent)

Abstract

By using an original dataset, this paper analyzes the sustainability of Italy's current accounts over the years 1861-2010. We find empirical support to sustainability: the Italian economy used external deficits (surpluses) to smooth aggregate consumption. Persistent current account deficits from 1861 to WW1 seem to have been used to prompt the nation's productivity and economic efficiency and so they do not seem to have undermined the nation's intertemporal solvency.

Suggested Citation

  • Alberto Rinaldi & Barbara Pistoresi, 2014. "A note on Italy's current account sustainability: 1861-2010," Economics Bulletin, AccessEcon, vol. 34(2), pages 1197-1204.
    • Handle: RePEc:ebl:ecbull:eb-14-00330
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2014/Volume34/EB-14-V34-I2-P110.pdf
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Current account sustainability; economic growth; Italy; unit root tests; Granger causality;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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