REMEMBERING FEDERICO CAFFE

This contribution represents a privileged celebration of Federico Caffe's ideas and lessons. The transmission of knowledge of this great teacher is considered in the light of the issues that afflict the Italian contemporary economy and cause a prolonged crisis. On this regard, starting from the works of Caffe, the discussion is on three main aspects: the present crisis and the economic policy response, human capital and technological progress. The first aspect is observed through the imperfect functioning of the market, and macroeconomic policies adopted during a period of great change, at the same time characterized by banks and financial institutions to much attracted by the short term results and distant from real economy needs. The widespread financial practice was too far from the vision of Caffe, neglecting the commitment aimed at the welfare system, leaving the market at its supposed self-regulation and instability. Recommendations include the need to go beyond the 'market failure' supporting aggregate demand, considering simultaneously the supply side. The second aspect, the human capital, represents one of the issues related to the failed economic recovery, and also, as proposed by Caffe, education and training characterize a possibility of equal opportunity reflecting on the social equality and the personal work fulfillment. Finally, it is presented a vision of technological change as the third aspect that is not undesirable by the employment point of view, but positive if accompanied by appropriate policy intervention, to encourage the economic growth path and even useful for social development. All this is discussed in the work of Federico Caffe, who was always on the side of the weak people in order to surpass the typical iniquities of the process of economic growth.