A brief summary on the last book by Cottarelli: “Seven Sins of the Italian Economy”.

I have recently finished reading the book “the seven sins of the Italian economy” published by Feltrinelli and written by the Italian almost-premier Carlo Cottarelli. For those who don’t know him, he is an Italian economist and former Director of the Fiscal Affairs Department of the International Monetary Fund.

In the book, Cottarelli describes seven “sins” of the Italian economy, responsible of slowing down the country’s economic growth. I have found the book of particular relevance for both its objectivity and for the author’s clarity of thought. These seven sins can be divided into two categories, the long-standing ones and those more recent. Those that are within the Italian economy’s DNA make most of the list, these are: tax evasion, corruption, slow justice, excessive bureaucracy and the disparity between the North and the South. On the other hand, the most recent ones are: the fast aging of the population and the difficulty of Italy in adapting to the common currency. In this brief article I will only focus on the first sin, the one on tax evasion. Continue reading “A brief summary on the last book by Cottarelli: “Seven Sins of the Italian Economy”.”

Nuggets of Public Finance

The Government Budget is a complex document that represents in a detailed way the financial and economic condition of a country. In addition, through an accurate analysis of the public expenses, it is possible to find out important information about the culture and the social structure of the State.

 

<<The Government Budget is the mirror of all the political and social problems of a country>>.  

                                                    Joseph Schumpeter

 

Depending on the information searched and the goals pursued, we can distinguish several types of budget statements.

In this article, I will briefly refer to the final budget and the provisional budget to give an idea about the essential content of a public budget statement and about the role of Gross Domestic Production (GDP) in the evaluation of the total wealth produced, of the national income and of the welfare level inside a society. Continue reading “Nuggets of Public Finance”

Universal basic income and testing social innovation

 

Like many other countries, Finland also fell in to recession after the financial crisis of 2007. As the number of employed people fell and it became increasingly difficult to keep up our public services, a lot of solutions were tried and suggested. One of the more ambitious ways of solving the financial problems facing Finland is the reinvention of our social security system. Continue reading “Universal basic income and testing social innovation”