I review the literature regarding the impact of financial innovation on the monetary transmission mechanism and on the way the central bank can achieve its ultimate goal, that is to control the price level. We argue that, although the form of central bank instruments and current methods for...

The strategic prospects for the US (or any) economy can be evaluated by reference to the financial balances of its main sectors, which are related to one another by a consistent accounting system. The 1992-2000 expansion, accompanied by a rising budget surplus, was greeted by a storm of...

The article discusses the possibility to cope with inflation, public deficit and balance of payments deficit without recurring to deflationary policies.

The article considers the current situation of Italy's economy and public finances in the light of the ongoing euro-crisis. It suggests that growth should be given a considerably higher priority than austerity measures, including because sustained growth eases fiscal consolidation. The work is...

The expansionary fiscal contraction thesis, that implies negative values for the fiscal multipliers, is criticised both from a theoretical and an empirical point of view. The most recent researches find multipliers of rather high positive values, in contrast with the rather low ones of the DSGE...

The article introduces to the new issue of the journal by putting into context the various articles contained therein. It specifically deals with the recent changes of opinion and approach on the side of the IMF and several economists concerning fiscal policy and the appropriate response to the...

The article analyzes retrospectively after seven years the impact that the publication of the "Manifesto against unemployment in the EU" has had on economic policies enabled in the various European countries. On the supply side, it is recognized that many suggestions of the "Manifesto" were put...

Most central banks are required or choose to stabilize a price index, largely by manipulating short term interest rates. A serious problem is what index to choose among the national income deflator, wholesale prices, the cost of living, with or eliminating highly volatile commodities such as...