The QQE is truly an unprecedented policy in the sense that it aims to increase inflation expectations in a situation where there is no room to further reduce the short-term interest rate, which is the main policy tool for a central bank. While the task is by no means easy, developments thus far have been encouraging.
Given the country’s specialisation in traditional products, Italy has so far suffered the most from the impact of globalisation, and the ensuing surge of competition from emerging markets, rather than from technology. But Italy is of course not immune to the challenges posed by technology.