Giovanni Zanetti

Financial and Real Economy, Are there Multiplicative Effects?

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Keywords: Subprime Mortgages, Interest Rates, Real Economy

The paper analyzes the effects of the international crisis triggered by the subprime mortgages on the real business cycle. The author explores the feedbacks between financial and real economy, primarily focusing on the impact of a financial crisis on the real sectors. He then examines the industrial policy measures aimed at limiting the consequences of the crisis.

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