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Realism, austerity or demagogy? Evidence from Italy

Bovi, Maurizio, (2013), “Realism, austerity or demagogy? Evidence from Italy”, www.voxeu.org, 20 March.

How do everyday Italians feel about their economic prospects? How are political reactions related to economic events? This column presents evidence suggesting that Italians are becoming disillusioned. Comparing Berlusconi’s and Monti’s resignation, sentiment was more positive after Belusconi’s. Rather than a test on Italian citizens’ realism or on their views on austerity, recent political elections should instead be read as a test of voters’ utter disaffection with political institutions.