The Politics of Fiscal Stabilization in Italy (1993-1998): A Historical Case
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This study provides a political analysis of Italian fiscal stabilization between 1993 and 1998 as a historical case of a successful fiscal stabilization, contrasting two competing explanations of Italian fiscal stabilization. One explanation is based on the theoretical perspective to emphasize the effects of domestic political institutions on the process of fiscal stabilization. The other explanation emphasizes the effect of the Italian commitment to the European Union as the external constraint to have enforced political consolidation of fiscal stabilization even in government instability in Italy at that time. This study concludes that the Italian commitment to the European Union was more crucial for achieving fiscal stabilization from 1993 to 1998 than the effects of domestic political institutional changes represented by the 1993 electoral reform.
Abstract
This study provides a political analysis of Italian fiscal stabilization between 1993 and 1998 as a historical case of a successful fiscal stabilization, contrasting two competing explanations of Italian fiscal stabilization. One explanation is based on the theoretical perspective to emphasize the effects of domestic political institutions on the process of fiscal stabilization. The other explanation emphasizes the effect of the Italian commitment to the European Union as the external constraint to have enforced political consolidation of fiscal stabilization even in government instability in Italy at that time. This study concludes that the Italian commitment to the European Union was more crucial for achieving fiscal stabilization from 1993 to 1998 than the effects of domestic political institutional changes represented by the 1993 electoral reform.
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