To understand the significance of the proposal to give the Euro-zone tools similar to those of th... more To understand the significance of the proposal to give the Euro-zone tools similar to those of the IMF, one must not forget that the launch of the Euro represented an unprecedented challenge.…
In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of a... more In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of all I intend to examine whether the benefits that the Soviet Union gained and is gaining from its trade with the Comecon countries can be meant as due to «exploitation » or a « discrimination » against them. The second topic on which Professor Schroeder’s paper (1974) mainly caught my attention is that of Comecon integration. In the last part of my paper I shall therefore attempt an evaluation of the integration efforts within the Comecon compared with the parallel efforts made in Western Europe in the framework of the EEC.In the economics relationships between the Soviet Union and the Comecon countries Professor Schroeder (1974) distinguishes two main periods and argues that until 1956 the Soviet Union benefited from a net capital transfert from Eastern Europe, whose size however cannet be specified. This «unequal partnership » was made possible by the political dominance of the Soviet Union and its means were war reparations, unrequited export deliveries to Eastern Europe and discriminatory pricing in trade. Professor Schroeder (1974) seems therefore to support the opinion that during the first main period in the Comecon’s life. the Soviet Union, in a sense, « exploited » and « discriminated » its socialist partners in Eastern Europe.
1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti ... more 1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti sovrani di un'intensita simile a quella della Grande Depressione degli anni Trenta del secolo scorso e…
1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti ... more 1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti sovrani di un'intensita simile a quella della Grande Depressione degli anni Trenta del secolo scorso e…
To understand the significance of the proposal to give the Euro-zone tools similar to those of th... more To understand the significance of the proposal to give the Euro-zone tools similar to those of the IMF, one must not forget that the launch of the Euro represented an unprecedented challenge.…
In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of a... more In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of all I intend to examine whether the benefits that the Soviet Union gained and is gaining from its trade with the Comecon countries can be meant as due to «exploitation » or a « discrimination » against them. The second topic on which Professor Schroeder’s paper (1974) mainly caught my attention is that of Comecon integration. In the last part of my paper I shall therefore attempt an evaluation of the integration efforts within the Comecon compared with the parallel efforts made in Western Europe in the framework of the EEC.In the economics relationships between the Soviet Union and the Comecon countries Professor Schroeder (1974) distinguishes two main periods and argues that until 1956 the Soviet Union benefited from a net capital transfert from Eastern Europe, whose size however cannet be specified. This «unequal partnership » was made possible by the political dominance of the Soviet U...
As a matter of fact the growing liberalization of product and factors of production markets in wh... more As a matter of fact the growing liberalization of product and factors of production markets in which consists one of the main structural feature of globalization (another being the emergence of a world economy transcending the old national economic spaces) is associated with increased capital flows both between countries belonging to the core of the world economy and between the latter and the periphery. Foreign direct investment (FDI) is commonly considered to be the most dynamic component of foreign capital flows, being the channel through which technology in the form of codified and tacit technical knowledge is transferred among different countries. Yet the amount and effects of technology transfer generated by FDI can be quite dissimilar, depending among other things on the level of development of the countries acting as investing or recipient economy. When the development gap is sufficiently large it is well possible that technology transfers give rise to some adverse effects on the host economy, while at the same time transmitting only partial or outdated knowledge. But this can happen for other reasons too, as we shall see. The transmission of partial or older technical knowledge is commonly referred to as the incomplete or unbalanced technology transfer between advanced and less developed countries (LDCs). This chapter is devoted mainly to the illustration of such an argument, with its determinants and consequences, using however as a starting point a brief description of some adverse effects of FDI for LDCs, not least owing to the interdependence of the two subjects.
Economia Internazionale International Economics, 1991
This paper contains a comprehensive treatment of the main analytical issues pertaining to the sov... more This paper contains a comprehensive treatment of the main analytical issues pertaining to the sovereign debt theory. As red thread for the study emergence of default in alternative formal frameworks is traced and identified, in its different forms ranging from insolvency or illiquidity to repudiation and to its general meaning of breach of a clause in the initial loan contract. The growing literature on the sovereign debt is surveyed on the basis of a distinction between static and dynamic models, as well as non optimizing and optimizing models, where assumptions of rational behavior may hold only for the borrower or for the lender too. Moreover, consequences of default are investigated, along with conditions for achieving efficiency in case of renegotiation of the initial credit contract. The paper addresses the modem versions of well known analytical tools as the two gap mode, the transfer or approach with new cases of paradoxical and immiserising results, the debt cycle or the growth-cum-debt model, along with extensions on recent approaches as the pure theory of country risk, in the presence of different specifications of the penalty imposed on the borrower that chooses to repudiate. It is also shown the impact of inefficiencies in the market structure and of agents information conditions on the different possible equilibrium outcomes. In addition, in case of debt overhang, conditions are described that render debt relief profitable for the lender too.
This study describes the long path that allowed Italy to give up the traditional policy of high w... more This study describes the long path that allowed Italy to give up the traditional policy of high wages-high inflation-devaluation of the national currency (the Lira) and accept a stability oriented policy inspired by the Bundesbank, till the final outcome of taking part in the euro launch in 1999. The central topic of the paper addresses the positive and negative consequences of the adhesion to the eurozone, stressing the widening gaps with the core countries economic conditions and the costs of the double dip recession which Italy suffered in the period 2008–2013. The analysis examines the difficulties experienced by the different Italian governments in producing the necessary reforms required by the euro zone membership. The study also examines the present day challenges facing the Italian economy, where a long required process of fiscal consolidation in a possible deflationary framework will hamper the reduction of the huge public debt, whose weight is second only to the Greek one. Introduction and conclusions stress the main goals and results of the study.
The paper critically considers the endogenous Optimum Currency Areas (or e-OCAs) theory, focussin... more The paper critically considers the endogenous Optimum Currency Areas (or e-OCAs) theory, focussing initially on early studies having identified a relevant link between the creation of a monetary union and an upgrading of trade intensity between member countries, on the one hand, and the increase in trade flows and the similarity of their business cycles, on the other. Developments of
Inquiry into the links between Foreign Direct Investment (FDI) and growth at a regional level foc... more Inquiry into the links between Foreign Direct Investment (FDI) and growth at a regional level focusing on recent developments of a new paradigm, which explains in terms of productivity heterogeneity of firms servicing foreign markets the different forms that internationalisation of production processes can take, ranging from exports to setting up of foreign affiliates. The paper analyses the main determinants
To understand the significance of the proposal to give the Euro-zone tools similar to those of th... more To understand the significance of the proposal to give the Euro-zone tools similar to those of the IMF, one must not forget that the launch of the Euro represented an unprecedented challenge.…
In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of a... more In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of all I intend to examine whether the benefits that the Soviet Union gained and is gaining from its trade with the Comecon countries can be meant as due to «exploitation » or a « discrimination » against them. The second topic on which Professor Schroeder’s paper (1974) mainly caught my attention is that of Comecon integration. In the last part of my paper I shall therefore attempt an evaluation of the integration efforts within the Comecon compared with the parallel efforts made in Western Europe in the framework of the EEC.In the economics relationships between the Soviet Union and the Comecon countries Professor Schroeder (1974) distinguishes two main periods and argues that until 1956 the Soviet Union benefited from a net capital transfert from Eastern Europe, whose size however cannet be specified. This «unequal partnership » was made possible by the political dominance of the Soviet Union and its means were war reparations, unrequited export deliveries to Eastern Europe and discriminatory pricing in trade. Professor Schroeder (1974) seems therefore to support the opinion that during the first main period in the Comecon’s life. the Soviet Union, in a sense, « exploited » and « discriminated » its socialist partners in Eastern Europe.
1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti ... more 1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti sovrani di un'intensita simile a quella della Grande Depressione degli anni Trenta del secolo scorso e…
1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti ... more 1. Introduzione L'euro e giunto al suo ventesimo anno di vita, superando la crisi dei debiti sovrani di un'intensita simile a quella della Grande Depressione degli anni Trenta del secolo scorso e…
To understand the significance of the proposal to give the Euro-zone tools similar to those of th... more To understand the significance of the proposal to give the Euro-zone tools similar to those of the IMF, one must not forget that the launch of the Euro represented an unprecedented challenge.…
In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of a... more In my comment paper on Professor Schroeder’s report (1974) I shall discuss two points. First of all I intend to examine whether the benefits that the Soviet Union gained and is gaining from its trade with the Comecon countries can be meant as due to «exploitation » or a « discrimination » against them. The second topic on which Professor Schroeder’s paper (1974) mainly caught my attention is that of Comecon integration. In the last part of my paper I shall therefore attempt an evaluation of the integration efforts within the Comecon compared with the parallel efforts made in Western Europe in the framework of the EEC.In the economics relationships between the Soviet Union and the Comecon countries Professor Schroeder (1974) distinguishes two main periods and argues that until 1956 the Soviet Union benefited from a net capital transfert from Eastern Europe, whose size however cannet be specified. This «unequal partnership » was made possible by the political dominance of the Soviet U...
As a matter of fact the growing liberalization of product and factors of production markets in wh... more As a matter of fact the growing liberalization of product and factors of production markets in which consists one of the main structural feature of globalization (another being the emergence of a world economy transcending the old national economic spaces) is associated with increased capital flows both between countries belonging to the core of the world economy and between the latter and the periphery. Foreign direct investment (FDI) is commonly considered to be the most dynamic component of foreign capital flows, being the channel through which technology in the form of codified and tacit technical knowledge is transferred among different countries. Yet the amount and effects of technology transfer generated by FDI can be quite dissimilar, depending among other things on the level of development of the countries acting as investing or recipient economy. When the development gap is sufficiently large it is well possible that technology transfers give rise to some adverse effects on the host economy, while at the same time transmitting only partial or outdated knowledge. But this can happen for other reasons too, as we shall see. The transmission of partial or older technical knowledge is commonly referred to as the incomplete or unbalanced technology transfer between advanced and less developed countries (LDCs). This chapter is devoted mainly to the illustration of such an argument, with its determinants and consequences, using however as a starting point a brief description of some adverse effects of FDI for LDCs, not least owing to the interdependence of the two subjects.
Economia Internazionale International Economics, 1991
This paper contains a comprehensive treatment of the main analytical issues pertaining to the sov... more This paper contains a comprehensive treatment of the main analytical issues pertaining to the sovereign debt theory. As red thread for the study emergence of default in alternative formal frameworks is traced and identified, in its different forms ranging from insolvency or illiquidity to repudiation and to its general meaning of breach of a clause in the initial loan contract. The growing literature on the sovereign debt is surveyed on the basis of a distinction between static and dynamic models, as well as non optimizing and optimizing models, where assumptions of rational behavior may hold only for the borrower or for the lender too. Moreover, consequences of default are investigated, along with conditions for achieving efficiency in case of renegotiation of the initial credit contract. The paper addresses the modem versions of well known analytical tools as the two gap mode, the transfer or approach with new cases of paradoxical and immiserising results, the debt cycle or the growth-cum-debt model, along with extensions on recent approaches as the pure theory of country risk, in the presence of different specifications of the penalty imposed on the borrower that chooses to repudiate. It is also shown the impact of inefficiencies in the market structure and of agents information conditions on the different possible equilibrium outcomes. In addition, in case of debt overhang, conditions are described that render debt relief profitable for the lender too.
This study describes the long path that allowed Italy to give up the traditional policy of high w... more This study describes the long path that allowed Italy to give up the traditional policy of high wages-high inflation-devaluation of the national currency (the Lira) and accept a stability oriented policy inspired by the Bundesbank, till the final outcome of taking part in the euro launch in 1999. The central topic of the paper addresses the positive and negative consequences of the adhesion to the eurozone, stressing the widening gaps with the core countries economic conditions and the costs of the double dip recession which Italy suffered in the period 2008–2013. The analysis examines the difficulties experienced by the different Italian governments in producing the necessary reforms required by the euro zone membership. The study also examines the present day challenges facing the Italian economy, where a long required process of fiscal consolidation in a possible deflationary framework will hamper the reduction of the huge public debt, whose weight is second only to the Greek one. Introduction and conclusions stress the main goals and results of the study.
The paper critically considers the endogenous Optimum Currency Areas (or e-OCAs) theory, focussin... more The paper critically considers the endogenous Optimum Currency Areas (or e-OCAs) theory, focussing initially on early studies having identified a relevant link between the creation of a monetary union and an upgrading of trade intensity between member countries, on the one hand, and the increase in trade flows and the similarity of their business cycles, on the other. Developments of
Inquiry into the links between Foreign Direct Investment (FDI) and growth at a regional level foc... more Inquiry into the links between Foreign Direct Investment (FDI) and growth at a regional level focusing on recent developments of a new paradigm, which explains in terms of productivity heterogeneity of firms servicing foreign markets the different forms that internationalisation of production processes can take, ranging from exports to setting up of foreign affiliates. The paper analyses the main determinants
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