Inflation in Italy was gradually brought down during the 1980s and then almost completely eliminated in the second half of the 1990s. Since 1993 the current account of the balance of payments has been in surplus. The external debt was gradually reduced and Italy became a creditor country. Since 1995 the public debt, although still enormous, has shown a clear downward trend in relation to GDP. After it re-entered the EMS in 1996, the lira did not fluctuate significantly with respect to the other European currencies. Italy adopted the euro when it was introduced at the beginning of 1999. A ‘culture of stability’, which seemed lost, has revived.
KeywordsInterest Rate Total Factor Productivity Euro Area Public Debt Average Annual Rate
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