Opinion: Italy’s Renzi must bring back the lira to end depression – Telegraph – John Gelmini

 

Map of Italy with EU flag

Map of Italy with EU flag (Photo credit: Wikipedia)

Dr Alf makes a good point.

The Lire is not really a viable currency if Italy is to function properly within the Eurozone and it was not really a currency anyone else was interested in before Italy joined the EU.

Renzi is a man who “talks a good fight ” but has yet to deliver anything.

Things are now so bad that a limited amount of pump priming from the ECB is needed to lift Italy and the moribund excuse for an economy which Renzi is presiding over.

A lift from the Vatican which has the second biggest gold reserves in the world might also help.

After that Italy has to restructure its economy, clear out the excessive corruption and slowness of decision-making and then start to really focus on making,and exporting original luxury goods and expensive motor cars to the new wealthy around the world, particularly in China, India and parts of the Middle East, South Korea and Singapore.

John Gelmini

Has Italy Really “Gone Back Into Recession”? | Jeffrey Frankel’s Blog

Countries using the Euro de jure Countries and...

Countries using the Euro de jure Countries and territories using the Euro de facto Countries in the EU not using the Euro (Photo credit: Wikipedia)

This is a recommended read from noted, Harvard, international macro-economist, Jeffrey Frankel. Check it out!

Has Italy Really “Gone Back Into Recession”? | Jeffrey Frankel’s Blog.

Frankel argues that Italy has been in one continuous decline since 2008.

This makes a mockery of the policies of the troika, namely the IMF, the ECB and the European Commission.

Solutions for Frankel are simple:

  1. Reduced austerity; and
  2. Supply-side reform

Thoughts?

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