Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- 1 Structure, main themes and data of the monetary history
- 2 Money growth and its determinants
- 3 From political unification to 1913: creation of a new currency, multiplicity of banks of issue, banking legislations, monetary systems
- 4 The First World War: inflation and stabilisation
- 5 The 1920s and 1930s: foreign exchange policy and industrial and financial restructuring
- 6 The Second World War and the 1947 stabilisation
- 7 The fifties and sixties
- 8 The seventies
- 9 Italy in the eighties: towards central bank independence
- 10 Conclusions
- Notes
- Bibliography
- Index of authors
- Subject Index
10 - Conclusions
Published online by Cambridge University Press: 31 December 2009
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- 1 Structure, main themes and data of the monetary history
- 2 Money growth and its determinants
- 3 From political unification to 1913: creation of a new currency, multiplicity of banks of issue, banking legislations, monetary systems
- 4 The First World War: inflation and stabilisation
- 5 The 1920s and 1930s: foreign exchange policy and industrial and financial restructuring
- 6 The Second World War and the 1947 stabilisation
- 7 The fifties and sixties
- 8 The seventies
- 9 Italy in the eighties: towards central bank independence
- 10 Conclusions
- Notes
- Bibliography
- Index of authors
- Subject Index
Summary
In this chapter we intend to draw general conclusions and lessons that emanate from our History. Six themes emerge from our work, themes which are not entirely unique to the Italian experience. Space and knowledge prevent us from pointing to similarities and dissimilarities between Italy and other countries. So, as a next best solution, we invite the economic historian and monetary economist of other countries to make the appropriate comparisons.
First theme: What is money?
At the time of political unification, people had a preference for money in the form of gold and silver coins. Paper notes were imperfect substitutes for metal coins. There were historical and political reasons for this relative distrust of paper money. Paper money was a newcomer to the market, making money holders reluctant to use it. The negative ‘network’ effect was reinforced by a deep suspicion that paper money was more prone to depreciation than gold or silver. Confidence in paper money derives from confidence in those institutions and governments that directly affect the purchasing power of money. The political history of Italy, with its century-old regional turmoil, did not inspire in money holders the trust necessary to make paper notes perfectly equivalent to metal coins.
The several banks of issue did not have a nation-wide branch network; consequently, their liabilities were regarded with some suspicion outside their local markets. It was only after Italy's exit from the gold standard that paper notes, both those issued by the government and those by the banks, gained wider acceptance. Similarly, bank deposits were very undeveloped at the time of political unification.
- Type
- Chapter
- Information
- A Monetary History of Italy , pp. 258 - 264Publisher: Cambridge University PressPrint publication year: 1997