Italy's New Economic Model Promises Sweeping Policy Impact
The Italian Ministry of Economic and Finance created a model called MACGEM-IT to help policymakers understand the impact of different policies on the Italian economy. This model is based on a detailed account of Italy's economic activities. It is like a big calculator that shows how the economy might respond to changes, like higher taxes or new regulations. The model is designed to break down the effects at various levels, from the overall economy to specific industries. By using this model, policymakers can predict both direct and indirect consequences of their decisions before putting them into action.