2025/12/12 by Giuseppe Ciccarone, Giovanni Di Bartolomeo · 1 voice
Economics, Econometrics and Finance · Energy · Social Sciences · #Economic Theory and Policy #Energy, Economy, and Technology Trends #Political Economy and Marxism
paper · pdf · doi:10.1215/00182702-12303256
openalex created_date 2025/12/12 · openalex publication_date 2025/12/12 · openalex updated_date 2026/06/11
Abstract In this article, we highlight Franco Modigliani's contribution to the so-called Tarantelli Proposal, which aimed to dismantle the full indexation of wages to prices. This proposal played a crucial role in the Italian political debate of the mid-1980s and ultimately led to the elimination of full indexation. The proposal was part of a more ambitious policy program. We thus also explore Modigliani's support of Tarantelli's policy project, centered on programmed inflation, social dialogue, and political exchange between wage moderation and the unions’ participation in the design and implementation of economic policy. Finally, we highlight the relevance of Modigliani's and Tarantelli's ideas today.