The roots of the Italian stagnation

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Well, we've argued since the beginning of the eurocrisis that considerably more evidence should have been put on structural reforms and much less on austerity. With articles like this showing the impact of lack of structural reforms, and with earlier articles from the IMF showing the multiplier being much larger under present conditions than thought before, we've seem to have been on the right track.

Unfortunately, governments have wasted much, perhaps even all their political capital on counterproductive austerity, which has made embarking on structural reforms that much more difficult. A crisis always provides opportunities, but this one seems to have been clearly missed..