This was supported by the findings of the 2005 study by Professor Alex Cukierman, which confirmed his earlier results: the independence of central banks and price stability are positively correlated. Over and beyond that, central bank independence is positively correlated with high, steady growth, price stability and low rates of interest. There are two types of central bank independence: a.
GDP fell by 5 per cent in Italy, as against 4.7 per cent in Germany, 2.5 per cent in France, 3.7 per cent in Spain and 4.9 per cent in the UK. The recession was especially hard on the small- and medium-sized enterprises that are the backbone of Italy’s industrial sector, with immediate effects on output and employment.