Publication
Dec 2011
This commentary outlines possible consequences if Italy is not able to implement structural reforms and if international institutions do not intervene with sufficient resources to prevent Europe’s second-largest economy from defaulting on its debt. The author anticipates that in this case the Italian economic system would embark on a perverse path that would follow three phases: liquidity crisis and insolvency, deflationary pressures, and finally inflationary pressures and economic and political instability.
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English (PDF, 4 pages, 183 KB) |
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Author | Diego Valiante |
Series | CEPS ECMI Commentaries |
Issue | 31 |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2011 Diego Valiante |