| Summary: | In this brief note the author comments on Carlo D’Adda’s Greater precision regarding “crowding out”, offering three additional observations on the topic. While it is true that the concept was used largely in ideological terms in Italy, it resulted in the widespread belief that an increase in spending and the public debt was simultaneously the cause and effect of the weakening of the productive structure - in the way in which it alternately depended on a reduction in the propensity to spend in the private sector or on a restrictive monetary policy. Even if imprecise, this diagnosis does not seem to be far from reality.
JEL: E51, H63, E52
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