We used the model in intense discussions with the International Monetary Fund in order to design and define the parameters of the policy to stabilize the Italian economy in 1974 in the wake of the first oil crisis.
This had caused an enormous imbalance in the external accounts and a surge in inflation, which was followed by a wage explosion due in part to the indexation of wages to prices. The success of the policy of credit restriction was immediate, thanks also to the resoluteness with which Governor Guido Carli implemented it. Inappropriate budget policies created new imbalances in the following years.