overheating, it is first of all required that, apart from those already decided on, no further fiscal impulses should be provided ; phrased differently, higher - than - expected revenues are to be reflected in lower public debt levels. second, moderate wage movements are to be ensured. even then, the new tax system for 2001 will boost average purchasing power by 4 % or even more, representing a powerful stimulus for consumption. many commentators view the new millennium as the start of a “ new economy ”. ict developments will undoubtedly have a major impact on world economic performance ; still, there is no indication whatever suggesting that economic laws have become fundamentally different. for this reason, and in order to be able to benefit to the full from the renewing economy, we must continue the structural reform policies ( further improving the operation of the labour market, especially on the supply side, and of a number of product markets ). more in general, policies must remain geared towards the achievement of well - balanced global macro - economic conditions ( low inflation, more equilibrated balance - of - payments positions ). we may well count our blessings, but should not close our eyes to reality.

bank of italy – cepr – eief conference firm dynamics and economic growth opening remarks by salvatore rossi senior deputy governor of the bank of italy and president of the institute for the supervision of insurance ( ivass ) rome, 19 - 20 december 2018 i am delighted to welcome you all to the bank of italy, and to open this workshop, which was jointly organized with the cepr and the einaudi institute of economics and finance. over today and tomorrow, 29 original papers will be presented, selected from more than 150. these works have been produced by distinguished scholars from academia and research institutions around the world. they cover a wide variety of topics relating to firm dynamics and its effects on economic growth. two keynote lectures will also be delivered, and i would like to thank the internationally renowned speakers, professor ufuk akcigit from the university of chicago and professor gian luca clementi from new york university. there is no need for me to underline the importance of studying firm dynamics today. the recession which followed the global financial crisis hit the whole world almost simultaneously ten years ago, though to varying degrees in different countries. firm dynamics is key to explaining the differences in its impact. country - specific frictions to the physiological exit and entry of firms in the market may severely limit growth prospects for an economy. italy is a case in point, as i will discuss later. in the short run, they affect and are affected by business cycle fluctuations and financial shocks. at this moment in time, after years of recovery, economic growth is slowing down somewhat all over the world. forecasts made by international organizations are currently reflecting the decline shown by conjunctural data. growing trade tensions, political uncertainty, and expectations that monetary stimulus will gradually be reduced in the main economic areas of the world are the most cited facts. in many advanced economies, the economic slowdown is raising concerns about potential output, since the recovery of recent years has not been accompanied by as buoyant an increase in productivity as we might have expected. that ’ s why firm dynamics is more important than ever before. innovation and technology adoption by as many firms as possible is the main source of growth and jobs in the economy, and they depend very much on the process of firm entry, survival, growth, and exit through which the market selects the most efficient and innovative players. new and young firms are those which drive input accumulation and output growth. if the most productive firms thrive and the less productive ones exit smoothly from