However, other important features of recent macroeconomic experience specifically the absence of a large decline in real interest rates and the significant deterioration in the current account balance - appear at least superficially inconsistent with the predictions from the standard analytics. One problem, I believe, is the assumption that the recent dramatic swing in the structural budget balance has been driven exclusively by policy.
Italy Following the unprecedented long-drawn negotiations for the formation of a coalition in Berlin, Italy is now at a political standstill, facing a drawn-out period of political consultations between the 21 / 26  BIS central bankers' speeches  President of the Republic and the parliamentary groups to form a coalition.