ABSTRACT
The macrodynamic model explored here focuses mainly on the impact of the dualistic character of the Italian economy on the labor market, inflation, the process of capital formation and its cyclical behavior. The model probably goes beyond the Italian experience and describes the supply and demand for goods, the distribution of income, the balance of payments on current accounts and the current account budget of the public sector. It refers to a historic period (30 years ago) during which dualism operated strongly.
