Download pdf
Analysis of Italian Economic Fluctuations Based on Keynesian Framework
- 1 Holy Trinity School
* Author to whom correspondence should be addressed.
Abstract
After the coronavirus-caused global recession, governments implemented various contingency measures to revive their economies worldwide. Despite improving digital marketing and international business relations, adverse effects still need to be addressed, and the issue takes time and money to resolve. Italy is one of the EU's most economically powerful countries, but COVID-19 has hit it hardest. This article will analyze relevant data and examine the causes of statistical fluctuations to explain Italy's economy. There are various reasons why Italy was so heavily infected. This study uses the concept of aggregate demand in Keynesian economics to analyze Italy’s economic model and gross domestic product (GDP) composition. In addition, by looking at the policies and other influential factors, the paper explores the current economic situation the Italian government is in. By providing some overview and further explanation of the data, the paper underscores that Italy has made a remarkable recovery after COVID-19 using investment support. However, the government is now too dependent on it, and its GDP structure has to change to improve its performance in solving the surging public debt and deficit issues.
Keywords
Economic growth, Keynesian, Gross Domestic Product, COVID-19
[1]. European Commission. “Economic surveillance of EU economies - Italy - Economic forecast for Italy.” Economy and Finance, 11 September 2023, https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/italy/economic-forecast-italy_en. Accessed 26 October 2023.
[2]. Bennett, Jonathan. “Adam Smith 1776 - An Inquiry into the Nature and Causes of the Wealth of Nations.” Early Modern Texts, 2017, https://www.earlymoderntexts.com/assets/pdfs/smith1776_1.pdf. Accessed 26 October 2023.
[3]. “Little Italy: The Eu Hasn’t Done Much to Bolster the Cratering Italian Economy.” Newsweek Global, vol. 163, no. 8, Aug. 2014, pp. 45–46. EBSCOhost, research.ebsco.com/linkprocessor/plink?id=4c87997f-a839-3028-8ce5-4e44a5be8e22.
[4]. Statista Research Department. “Unemployment in Italy - Statistics & Facts.” Statista, 20 July 2023, https://www.statista.com/topics/6294/unemployment-in-italy/#topicOverview. Accessed 26 October 2023.
[5]. The Global Economy. “Investment as percent of GDP around the world.” TheGlobalEconomy.com, 2023, https://www.theglobaleconomy.com/rankings/investment_percent_of_gdp/. Accessed 26 October 2023.
[6]. BANCA D'ITALIA. “Italy Foreign Direct Investment - September 2023 Data - 1995-2022 Historical.” Trading Economics, 2023, https://tradingeconomics.com/italy/foreign-direct-investment. Accessed 26 October 2023.
[7]. Trading Economic. “Italy Exports By Category.” Trading Economics, 2023, https://tradingeconomics.com/italy/exports-by-category. Accessed 26 October 2023.
[8]. Pritoni, Andrea, et al. “Change of Government and Interest Groups' Preference Attainment on the Formulation of the Italian National Recovery and Resilience Plan (NRRP): from Conte to Draghi.” Italian Political Science Review / Rivista Italiana Di Scienza Politica, vol. 53, no. 3, 2023, pp. 333–350., doi:10.1017/ipo.2023.7.
[9]. European Commission. “Italy's recovery and resilience plan.” European Commission, 2023, https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility/country-pages/italys-recovery-and-resilience-plan_en. Accessed 26 October 2023.
[10]. U.S. Department of State. “2023 Investment Climate Statements: Italy.” State Department, 2023, https://www.state.gov/reports/2023-investment-climate-statements/italy/. Accessed 26 October 2023.
[11]. European Central Bank. “Five things you need to know about the Maastricht Treaty.” European Central Bank, https://www.ecb.europa.eu/ecb/educational/explainers/tell-me-more/html/25_years_maastricht.en.html. Accessed 26 October 2023.
[12]. Globe Magazine. "Rising debt risks, a return to the European debt crisis? _Xinhua Newspaper-Globe." Xinhua, 1 September 2023, http://www.news.cn/globe/2023-09/01/c_1310737815.htm. Accessed 26 October 2023.
[13]. The Italian National Institute of Statistics. “Italy Government Budget - 2023 Data - 2024 Forecast - 1995-2022 Historical - Calendar.” Trading Economics, 2023, https://tradingeconomics.com/italy/government-budget. Accessed 26 October 2023.
[14]. BANCA D"ITALIA. “The Eurosystem's monetary policy measures in response to the COVID-19 pandemic and the Bank of Italy's contribution.” BANCA D'ITALIA EUROSISTEMA, 24 July 2020, https://www.bancaditalia.it/media/notizia/the-eurosystem-s-monetary-policy-measures-in-response-to-the-covid-19-pandemic-and-the-bank-of-italy-s-contribution/?dotcache=refresh&dotcache=refresh. Accessed 26 October 2023.
[15]. Han, Ice. "Financial Watch: Europe's Multiple Fiscal Initiatives to Cope with Epidemic Shock." Xinhua, 11 March 2020, http://www.xinhuanet.com/politics/2020-03/11/c_1125698673.htm. Accessed 26 October 2023.
[16]. Zhang, Jue, and Jing Cheng. "New Century Ratings All Rights Reserved." Shanghai New Century Credit Rating & Investment Services, 2020, http://www.shxsj.com/uploadfile/kanwu/2020/20200401-1.pdf. Accessed 26 October 2023.
[17]. Gross, Bnaya, et al. “Spatio-temporal propagation of COVID-19 pandemics.” IOPscience, A LETTERS JOURNAL EXPLORING THE FRONTIERS OF PHYSICS, 9 March 2019, https://iopscience.iop.org/article/10.1209/0295-5075/131/58003/meta. Accessed 26 October 2023.
[18]. INTERNATIONAL MONETARY FUND. “Italy: Staff Concluding Statement of the 2022 Article IV Mission.” International Monetary Fund, 19 May 2022, https://www.imf.org/en/News/Articles/2022/05/19/italy-staff-concluding-statement-of-the-2022-article-iv-mission. Accessed 26 October 2023.
[19]. Frilingou, Natasha, et al. “Navigating through an energy crisis: Challenges and progress towards electricity decarbonisation, reliability, and affordability in Italy.” Energy Research & Social Science, vol. 96, no. ISSN 2214-6296, 2023, p. 102934. ScienceDirect, https://www.sciencedirect.com/science/article/abs/pii/S2214629622004376.
[20]. Statista Research Department. “Italy: natural gas supply by origin 2023.” Statista, 17 August 2023, https://www.statista.com/statistics/1325804/natural-gas-supply-in-italy-by-origin/. Accessed 26 October 2023.
[21]. OECD. “OECD Economic Surveys: Italy 2021.” OECD iLibrary, 2021, https://www.oecd-ilibrary.org/sites/b76a212b-en/index.html?itemId=/content/component/b76a212b-en. Accessed 26 October 2023.
[22]. The World Bank. “Italy Share of services - data, chart.” TheGlobalEconomy.com, 2022, https://www.theglobaleconomy.com/Italy/Share_of_services/. Accessed 26 October 2023.
[23]. United Nations Conference on Trade and Development. "Trade and Development Report, 2022, Development Prospects in a Divided World: Global Disorder and Regional Responses." unctad, 16 June 2023, https://unctad.org/system/files/official-document/tdr2022_ch.pdf. Accessed 26 October 2023.
Cite this article
Zhu,X. (2024). Analysis of Italian Economic Fluctuations Based on Keynesian Framework. Advances in Economics, Management and Political Sciences,68,178-188.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).