Structural reforms to kick-start growth would attract equity-type funds from external investors and encourage entrepreneurs to invest their own resources, thereby being the first to show confidence in their firms’ prospects. Firms’ funding model reflects the structural traits of Italy’s economy, such as the modest size and family-based ownership of businesses.
Nonetheless, they did not prevent a severe and protracted global recession, which led to a period of weak and uneven global growth that continues to the present day. Through the crisis and beyond, the Federal Reserve acted aggressively and unconventionally – first to stem the crisis and, later on, to support the recovery.