The 1935 Italian Currency Crisis

Roberto Di Quirico

First

2023-01-01

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Abstract

In 1935, the mounting balance of payment crisis and the League of Nations sanctions against Italy because of the invasion of Ethiopia generated a currency crisis that induced a profound transformation in the structure of the Italian economy and a new institutional framework on the economic governance side. The whole structure of the internal economy and economic governance was changed by the government’s control on currency trade and use and the reinforcement of new arrangements to organize production (autarchia).