Fig. 2

Wavelet coherence of pair ‘deficit–debt’ (a) and partial wavelet coherence of pair ‘deficit–debt’ by controlling for inflation (b) (Italy, 1862–2013). Notes (1) The arrows suggest the phase difference status between variables. They are in phase when the arrows are pointed to the right (positively related) and out of phase when the arrows are pointed to the left (negatively related). (2) The deficit is leading when the arrows are oriented to the right and up, or to the left and down, respectively. Otherwise, the debt is leading when the arrows are pointed to the right and down, or to the left and up, respectively. (3) The power range goes from blue colour (low power) to yellow one (high power). (4) The variables have a cyclical effect in the phase and anti-cyclical effect in the anti-phase.