The “Single point” Wage Indexation and Inflation Control: The Lively Debate in Italy (1975-85)
Journal title HISTORY OF ECONOMIC THOUGHT AND POLICY
Author/s Luca Sandonà
Publishing Year 2026 Issue 2026/1
Language English Pages 25 P. 29-53 File size 326 KB
DOI 10.3280/SPE2026-001002
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This paper examines the Italian academic debate on inflation control after the 1975 single point wage indexation reform of the working collective general agreements through the 1985 popular referendum, which confirmed the revision of this act by Bettino Craxi’s government. This study aims to highlight how competing schools of economic thought – neoliberal, heterodox leftwing, liberal, and reformist – influence policy proposals, reflecting different political philosophies and social class allegiances. Consequently, this work focuses on key events, including the Modigliani controversy and Ezio Tarantelli’s predetermination proposal. The inflation interpretations are contextualised in the political, cultural, social, and historical scenarios in which they were elaborated. Finally, this study attempts to explain why the Italian economic culture rejected the idea of inflation as a consequence of monetary supply and emphasised inflation as a costpush phenomenon.
Keywords: wage indexation, inflation control, Italy, Modigliani controversy, Tarantelli proposal
Jel codes: B2, J38, N14, P11
Luca Sandonà, The “Single point” Wage Indexation and Inflation Control: The Lively Debate in Italy (1975-85) in "HISTORY OF ECONOMIC THOUGHT AND POLICY" 1/2026, pp 29-53, DOI: 10.3280/SPE2026-001002