The Italian labour market policy reforms and the economic crisis: coming towards the end of Italian exceptionalism?

2018 ◽  
Author(s):  
Patrik Vesan ◽  
Emmanuele Pavolini
Keyword(s):  
Labour Market ◽  
Economic Crisis ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
New Wave ◽  
Sovereign Debt Crisis ◽  
Policy Reforms ◽  
Market Policy ◽  
Labour Market Policies ◽  
The Great Recession

The Italian labour market has been put under very strong pressure since the onset of the financial and economic crisis. After the 2011 sovereign debt crisis a new wave of reforms started in relation to labour market policies. Although it is not possible to detect a single trajectory of change in Italian labour market policies, we can observe an overall tendency toward a peculiar version of ‘welfare readjustment’, a pattern of reform in which governments curtail such policies as income or job protection for insiders, while adopting new social policies. This ‘readjustment process’ has been realised through the adoption of some provisions that favour ‘outsiders’ and, at the same time, the drastic retrenchment of labour rights for workers on open-ended contracts. As a result, the boundaries between ‘insiders’ and ‘outsiders’ now appear more blurred than they were before the outbreak of the Great Recession.

Assessing sovereign risk: the case of rich countries

2014 ◽  
Vol 6 (3) ◽  
pp. 212-225 ◽  
Author(s):  
Norbert Gaillard
Keyword(s):  
Sovereign Debt ◽  
Credit Rating ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Bond Yields ◽  
Content Type ◽  
The Great Recession ◽  
Market Participants ◽  
Investment Grade ◽  
Rich Countries

Purpose – This paper aims to shed new light on the inability of credit rating agencies (CRAs) to forecast the recent defaults and so-called quasi-defaults of rich countries. It also describes how Moody’s sovereign rating methodology has been modified – and could be further improved – to solve this problem. Design/methodology/approach – After converting bond yields into yield-implied ratings, accuracy ratios are computed to compare the respective performances of CRAs and market participants. Then Iceland’s and Greece’s ratings at the beginning of the Great Recession are estimated while accounting for the parameters included in the new methodology implemented by Moody’s in 2013. Findings – Market participants outperformed Moody’s and Standard & Poor’s in terms of anticipating the sovereign debt crisis that hit several European countries starting in 2008. However, the new methodology implemented by Moody’s should lead to more conservative and accurate sovereign ratings. Originality/value – The chronic inability of CRAs to anticipate public debt crises in rich countries is dangerous because the countries affected – which are generally rated in the investment-grade category – are substantially downgraded, amplifying the sovereign debt crisis. This study is the first to demonstrate that Moody’s has learned from its recent failures. In addition, it recommends ways to detect serious threats to the creditworthiness of high-income countries.

The Transmission of the Great Recession (2008-2009) and the Sovereign Debt Crisis (2010-2012) to Latin America

2018 ◽  
pp. 19-42
Author(s):  
Roberto J. Santillán-Salgado ◽  
Edgardo A. Ayala-Gaytán
Keyword(s):  
Growth Performance ◽  
Latin American ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
The Great Recession ◽  
International Financial Crises ◽  
International Financial Crisis ◽  
Hypothetical Scenario ◽  
Econometric Evidence

In this work we discuss econometric evidence on four major issues that relate to the six largest Latin American economies (Argentina, Brazil, Chile, Colombia, Mexico, and Peru) during the two consecutive international financial crises between 2008 and 2012. Our first concern has to do with the mechanism of transmission of the international financial crisis and its secondary effects on the real and financial sectors of our sample countries. The second aspect that we explore refers to the actual magnitude of both, real and financial effects of the crisis. Our third objective has to do with an evaluation of the role played by individual countries' external macroeconomic vulnerability. And, finally, we propose a contra-factual analysis of the growth performance of our sample of Latin American economies, with the growth performance they would have experienced in a hypothetical scenario of no external turmoil.

Economic Crisis and its Impact on Regionalism and Globalism

2016 ◽  
pp. 1841-1863
Author(s):  
Baris Kablamaci ◽  
Giray Gozgor
Keyword(s):  
International Trade ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Historical Pattern ◽  
Recent Developments ◽  
Great Trade Collapse ◽  
Financial Crisis Of 2008

This chapter reviews the financial crisis of 2008-09 and its impacts on the international trade in terms of regionalism and globalism. The chapter glances over different aspects of globalism and regionalism as well as looks on historical pattern and recent developments of regionalism and globalism. The data used in the chapter indicates that the financial crisis of 2008-09 negatively affected both globalization and regionalization trends. In addition, the EU has experienced an interesting transformation from regionalism to globalism. This chapter suggests that the issue is not only related with the great trade collapse of 2008-09 but also the sovereign debt crisis of 2010-12.

Sign in / Sign up

Export Citation Format

Share Document