Early policies and the shift towards fascist economics

Question 1

Mussolini’s first goal

Answer 1

win over powerful, established industrial elites

Question 2

Alberto De’Stefani

Answer 2

minister of finance, 1922

he favoured policy with little government interference + wanted to reduce government spending to balance budget
privatised public owned industries (eg. telephone) and reduces state expenditure
deregulated economy and cut protective tariffs
1921-24, manufacturing production improved and budget surplus
but agricultural groups unhappy about tariff reduction

Question 3

July 1925

Answer 3

De’Stefani replaced by Giuseppe Volpi, transitioned to a more regulated, state-run economy with greater personal influence from Mussolini

Question 4

August 1926

Answer 4

‘Battle for Lira’’, August 1926
1922: 60 lira to £
1926: 150 lira to £
Mussolini afraid of inflation crisis which would hurt middle class
Mussolini believed strength of lira represented strength of fascist regime

Question 5

fate of the regime

Answer 5

Mussolini told Volpi ‘the fate of the regime is tied to the fate of the lira’; revaluation of the lira was a battle to be won by the sacrifices of the Italian people

Question 6

December 1927

Answer 6

lira fixed to at 19 to $ and 92.46 to £
represented will of duce and his power to uphold Italian economic pride
Volpi and other economists believed valuation was too high and government was forced to introduce a range of deflationary measures (price reductions and wage cuts)
Export industries were biggest losers; overvalued Italian products in overseas markets

Question 7

were policies successful>?

Answer 7

Mussolini’s economic policies did not achieve their objectives economically
Battle for Lira caused deflation, hampered Italy’s export industries