Economists From Italy

"One needs a complex package of policies and, as we always stress, structural reforms come first, because many of the problems of the euro area are structural. And I'm sure that's also the biggest fear for the Governing Council as a whole. We discussed the possibility of negative deposit rates, but our objective is maintaining price stability."

"It is too early to assess the policies of the new German government. I can only say that the crisis has shown that the monetary union is incomplete and that the weaknesses need to be remedied. Germany helps the euro best by further strengthening its competitiveness and promoting growth."

"Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough. (26 July 2016, speech to Global Investment Conference in London)"

"In Greece, the position at the outset was particularly difficult, so now we have to be particularly patient with the country. That's no surprise."

"Our friendship goes back many decades, to when we shared a common plane. Over the years, over the decades, I have had enormous respect for Mr. Draghi. He has had an extraordinary capacity for intellectual analysis of issues that focused on the common good and not just the immediate. [He is the] symbol of a generational challenge. [He has carried out] extraordinarily complicated tasks because it was believed, and it turned out to be correct, that he would analyze the problems and not approach them from a biased position. [He is] a man with a unique ability to analyze situations and contribute to their solution."

"ECB [European Central Bank] President Mario Draghi’s famous promise to do ‘whatever it takes’ to preserve the eurozone was a masterly move to buy time. But monetary policy cannot solve the currency union’s problems."

"In the early 1950s Franco Modigliani, with Richard Brumberg and , formulated the life-cycle theory of consumption and savings that enjoyed a huge and undisputed success for at least three decades. It replaced Keynes’s ‘fundamental psychological law’ of savings, according to which the marginal and average propensities to save grow as income rises. On the other hand, the life-cycle theory maintains that the level of savings depends on the age of consumers, and hence on the demographic structure of society rather than on the level of family income."

"Modigliani's theory was a powerful searchlight on what was happening... It is the best explanation of what has actually been happening in the great swing of American life since the 1950's."

"I believe people can solve complex problems eventually. By repeated trial and error they will get there; but they need a long time. At this point I agree with Herbert Simon. People do not learn immediately, as those rational expectations models seem to imply. I don't believe that. The statement that assumptions do not matter is nonsense. It is funny. Yes, I assume people are consistent in their behavior. I assume that not because I believe everybody actually is, but because I believe, on the average, you do not get too far from it."

"Macro rational expectations, as I have labeled the hypothesis, seems to say that expectations in an economist's model must be perfectly consistent with his model that embodies these expectations. In other words, the agents of his model must all share his views of the relevant economic mechanisms, as well as his data. Why? Because if he holds them they must believe they are God's truth and, if so, rational people can have no other views (and of course we should never ask how they would come by these views and data, that not even other specialists may have heard of yet, let alone accepted). I submit that this view is pretty absurd--I would almost say offensive! I certainly believe that I know more about economics and the economy than (almost) everybody else, and i can even prove it: If everybody shared my vies, then the economy could not be in today's troubles (though it might conceivably be in some different ones!)."

"A situation where people can grow old without having a job that rewards them individually while adding to the collective well-being is morally unacceptable."

"The life cycle of family size, at least in the U.S., has a very humped shape rather similar to that of income, though with a somewhat earlier peak. As a result, one might expect, and generally finds a fairly constant rate of saving in the central age group, but lower saving or even dissaving in the very young or old."

"What is the "cost of capital" to a, firm in a world in which funds are used to acquire assets whose yields are uncertain; and in which capital can be obtained by many different media, ranging from pure debt instruments, representing money-fixed claims, to pure equity issues, giving holders only the right to a pro-rata share in the uncertain venture? This question has vexed at least three classes of economists: (1) the corporation finance specialist concerned with the techniques of financing firms so as to ensure their survival and growth; (2) the managerial economist concerned with capital budgeting; and (3) the economic theorist concerned with explaining investment behavior at both the micro and macro levels."

"A fairly large part, if not, indeed, the very nucleus, of the Fascist movement has been built up of ex-Socialists who abandoned their party because of, or in consequence of, the war. This observation is particularly true of the younger element in the Socialistic party, including young men of a practical turn, often restless in temperament, who had rallied to the Socialist party not so much because of its positive economic program, as because of its negative program of protest against the aimless individualism of the Liberal regime, and who found in Fascism the means for effectuating their desire to take a part and to reconstruct."

"The most notable difference (of the American character) lies in the psychology of work. In the Orient one works to live; in Europe one works to consume; in America one works to work. These are the three stages of a progressive evolution."

"Today we are practically living a trade war, a currency war because the exchange rate today is one of the important factors to determine the competitiveness or not of products. Generalized currency depreciation in my view is an explicit strategy used by countries and that threatens us."

"Most lobbying is pro-business, in the sense that it promotes the interests of existing businesses, not pro-market in the sense of fostering truly free and open competition."

"Among civilized peoples, especially the very wealthy population of the United States of America, women have become objects of luxury who consume but do not produce."

"Empirical laws ... have only slight or even no value beyond the limits within which they have been observed to be true."

"Society is not homogeneous, and those who do not deliberately close their eyes have to recognize that men differ greatly from one another from the physical, moral, and intellectual viewpoints."

"The diverse natures of men, combined with the necessity to satisfy in some manner the sentiment which desires them to be equal, has had the result that in the democracies they have endeavored to provide the appearance of power in the people and the reality of power in an elite."

"Men follow their sentiments and their self-interest, but it pleases them to imagine that they follow reason. And so they look for, and always find, some theory which, a posteriori, makes their actions appear to be logical. If that theory could be demolished scientifically, the only result would be that another theory would be substituted for the first one, and for the same purpose."

"When it is useful to them, men can believe a theory of which they know nothing more than its name."

"History is a graveyard of aristocracies."

"For a very long time, and among a large number of peoples, political power has belonged to the owners of the land."

"Usually, so far as improvement in the people's economic conditions is concerned, humanitarians simply play the role of the busybody."

"Increase in the wealth per capita fosters democracy; but the latter, at least according to what we have been able to observe up to now, entails great destruction of wealth and even eventually dries up the sources of it. Hence it is its own grave-digger, it destroys what gave it birth."

"Assume that the new elite were clearly and simply to proclaim its intentions which are to supplant the old elite; no one would come to its assistance, it would be defeated before having fought a battle. On the contrary, it appears to be asking nothing for itself, well knowing that without asking anything in advance it will obtain what it wants as a consequence of its victory."

"The assertion that men are objectively equal is so absurd that it does not even merit being refuted."

"The economic and social theories used by those who take part in the social struggle ought to be judged not by their objective value but primarily for their effectiveness in arousing emotions. The scientific refutation of them which can be made is useless, however correct it may be objectively."

"It is a known fact that almost all revolutions have been the work, not of the common people, but of the aristocracy, and especially of the decayed part of the aristocracy."

"Se l'arte dell'eloquenza è l'arte di persuadere, non vi è altra eloquenza che quella di dire sempre il vero, il solo vero, il nudo vero. Le parole, onde è necessità di nostra inferma natura di rivestire il pensiero, saranno tanto più potenti, quanto più atte al fine, cioè più nudo lasceranno il vero, che è nel pensiero."

"Il voler tutto riformare è lo stesso che voler tutto distruggere."