Visco: “In Italy there is no longer a risk of inflation but deflation ‘- Il Sole 24 Ore

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This article was published March 27, 2015 at 10:55.

“In Italy there is more inflation, but rather a risk of deflation.” He said the governor of the Bank of Italy Ignazio Visco remembering La Sapienza University of Rome Tarantelli. In the thirtieth anniversary of the death of economist killed in Rome at the hands of the Red Brigades Visco spoke of the eighties when in Italy “inflation was a serious problem.” To combat the high prices, Tarantelli thought to act on shots of the escalator, and “had the great idea to look ahead inflation rate,” which also convinced the Bank of Italy and then the port “to the one that was called consultation . “

same causes problems today than yesterday
In his speech, Visco said that the factors that led to the spike in inflation of the eighties were the low rate of competition, the existence of a protected service sector, along with inadequate services and a strong phenomenon of corruption, while today they are the main perpetrators of economic growth rates very low. “The problems of today do not have causes very different from those of yesterday: low competition, tertiary protected, inadequate services and corruption.” But “instead of seeing them” projected “in high inflation, we see them – he concluded – in economic growth rates regularly very low.”

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