Government Wage Shocks: A Fiscal Trap with Long-Term Consequences
The question of how governments should deploy fiscal tools to stimulate economic growth or address crises has long been debated. Among the arsenal of fiscal policies, government wage shocks—significant increases in public sector wages—stand out as one of the least…
Italian Government -8.8% Q1 fiscal deficit seems way out of order
The quarterly non-financial sector account summary of Italy’s General Government account gives a brief concise framework of Italy’s public finances and the main economic factors. What caught the eye of keen observers has been the out-of-the-ordinary Q1 fiscal deficit balance…