While this phenomenon is a stylized fact, its implications for the propagation and persistence of aggregate shocks have only been studied quite recently. Moreover, the impact of recessions induced by financial rather than real shocks is still comparatively underexplored. Today’s presentations will also cover these important issues, which have clear implications for policies to stabilize the business cycle.
Let me conclude with a few words on Italy. Its lack of business dynamism has been an important determinant of the sluggish productivity growth over the last 20 years according to most research in this field, much of which has been conducted by the Bank of Italy’s economists.