Mussolini

Mussolini-Quota Novanta

revaluation of the lira from 150 lira to 90 lira against British pound sterling
tariffs introduced by the state were intended to protect the new value of the lira and to favour sectors of the economy from foreign competition

MOTIVES POLITICAL- strong lira=strong Italy

TURNIG POINT IN ECONOMIC POLICY-(free market was abandoned and state intervened to regulate economy)

EFFECTS OF REVALUATION

Cheap imports benefited heavy industries which relied on raw materials
these industries provided the basis for an expanded rearmanent economy therefore supporting the "active foreign policy
tariffs on undesiderable imports kept their price high reducing their demand
over valuation od lira required fascist propaganda to convince workers of the need to cut wages in order to bring them in line with the new currency value
as a result wages fell more than prices and so living standards lowered considerably

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During the depression

the bancks with too much money tied up in long term loans were hit badly
through the Istituto Mobiliare Milano (IMI 1931) and the Institute for Industrial Reaconstruction (IRI1933)the government recued the banks and industries
banks that survived the crisis were prevented for long term lending, which became the responsability of stage agencies lile the IRI or IMI
the "revolution in italian finance saved many small firms and individuals from ruin and was quoted approvingly

After the depression

the government continued an active economic role through the ownership of businesses as well as through trade policies and import duties
economy remained in private ownership and the government worked alongside and in suppoert of large private firms
many of the shares obtained by the IRI were later sold in order to offset organisation's costs
by 1939 the IRI had built a dominatn interest in some of the country's largest enterprises

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