On the nature and causes of business fluctuations in Italy, 1861-2000

Since Unification (1861), Italy has experienced approximately 20 business cycles. In the same period, the country’s economic structure has changed dramatically. This essay analyses the nature and causes of business fluctuations in Italy over one and a half century emphasizing the role of structural change in shaping each cyclical episode. A mix of real and nominal factors, structural change, and the evolving financial conditions of firms and banks makes every cycle a ‘historical episode’ in and of itself.