New challenges have emerged as a result of the significant increase in wholesale funding of financial intermediaries, the emergence of new institutions (some of them highly leveraged and to which banks are very much exposed) and the increasing transfer of risks previously concentrated in the banking sector to other agents, such as insurance companies. A comprehensive framework for policy analysis is still lacking.
In the space of ten years, youth emigration increased fivefold to reach 0.5 per cent in 2017, while at 0.4 per cent, graduate emigration more than doubled. Italy has been slow to respond to the technological revolution (Figure 7) and economic growth has been badly hit as a result.