WASHINGTON, April 11 (Reuters) - Italy’s economic policy since elections last year has been focused mainly on social transfers, which will help aggregate demand but will do little to help raise productivity which is needed for faster growth, the head of the Italian central bank said.
“Since last year, the focus is on transfers, not on growth,”
Ignazio Visco told a seminar on the sidelines of the International Monetary Fund meetings in Washington.
“The transfers will have an effect on aggregate demand, but will not change productivity,” he said. (Reporting By Jan Strupczewski Editing by Francesco Canepa)