Current Fiscal Policy/ Effects of Fiscal Policy 

Italy to Present 80 Billion-Euro Stimulus Package Next Week
By: Andrew Davis

The Italian Government has presented an economic stimulus plan of $80 Billion Euros ( $110 Billion Dollars) in public and private spending on highways and other new infrastructure projects. The government will spend 12 Billion Euros on infrastructure, along with raising 4 Billion Euros from the Private Sector to help with the stimulus. 

This type of policy is a form of Expansionary Policy since the government is decreasing taxes and increasing government spending to help the unemployment rate decrease, help inflation to stable or decrease, and increase the GDP. This policy will also increase the countries deficit.