The Italian Monetary Policy in Perspective: Lessons from Monetary History of Italy before the EMU

  • Mauro Rota
  • Donatella Strangio


Italian monetary policy formally became independent in 1981 after the well-known “divorce” between the Bank of Italy and the Treasury. The policy then adopted the implicit goal of low inflation and at the same time moderating cyclical fluctuations of the economy (Clarida et al., 1998). It is also entrenched the idea that before the divorce, namely before 1979, Italian monetary policy had assumed the target of control of aggregate demand in both a countercyclical and pro-cyclical perspective through the management of domestic credit.


Interest Rate Monetary Policy Central Bank European Monetary Union Economic Cycle 
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© Mauro Rota and Donatella Strangio 2015

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  • Mauro Rota
  • Donatella Strangio

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