Status-quo bias and structural reforms in Italy

The harmful effects associated with the fallacy known as Lucas Critique or
Panebianco Fallacy (previous post), were fully apparent yesterday, after that Matteo Renzi, the new leader of Democratic Party (PD), submitted in live-streaming to his comrades the political deal (a pact) he reached with Silvio Berlusconi, leader of centre-right opposition party (Forza Italia). This deal is about a seemingly critical package
of structural reforms, aiming at changing Italian institutional framework. Continue reading