• Abstract
  • Non-technical summary
  • 1 Introduction
  • 2 Political news in Italy: 1973-2007
  • 3 Empirical methodology
  • 3.1 Classification of political and other events
  • 3.2 Empirical model
  • 4 Results
  • 4.1 Benchmark results
  • 4.2 The rollercoaster of Italy’s political cycle
  • 4.3 Has the euro changed anything?
  • 4.4 Robustness and caveats
  • 5 Conclusions
  • References
  • Tables and fi gures
  • European Central Bank Working Paper Series