Italy Booklet 6- The Fascist Economy Flashcards
When was Alberto de Stefani appointed minister of finance?
1922
What did de Stefani believe in?
The ideas of free trade and laissez-faire economics. He wanted to keep government interference in the economy to a minimum.
What did de Stefani do as minister of finance and what consequences happened as a result of this?
Privatised the telephone sector, reduced state expenditure, deregulated the economy and cut protective tariffs. This meant that manufacturing production improved from 1921 to 1924. However, agricultural groups were unhappy about the reduction in tariffs and there were inflationary problems and pressure on the lira in foreign markets.
Who replaced Alberto de Stefani as minister of finance in 1925?
Count Giuseppe Volpi.
What was the rate of inflation?
In 1922- 90 lira = £1
In 1926- 150 lira = £1
What policies were introduced in the Battle for Lira?
In December 1927, the lira was artificially fixed at 92.46 to the British pound.
Deflationary measures like massive price reductions and cuts to workers wages.
What were the consequences of the Battle for Lira?
Export industries suffered as this overvalued Italian products in overseas markets. The policies represented Mussolini’s power and strength as a leader rather than the actual economic needs of the Italian people.
How did Mussolini justify the Battle for Lira?
He suggested that the collapse of the lira would lead to moral and economic disaster and that he doesn’t want the Italian people to have to suffer this.
What did the creation of the Corporate State grow out of?
The failure of Rocco Law 1926 which failed completely to balance out the interests of the fascist syndicates and Italian industry.
What was the Ministry of Corporations meant to be?
A mixed union of workers and employers who would discuss and implement national economic planning which would benefit them both, thus leading to a more productive and harmonious economic order. It was also meant to unify Italy’s classes and create a ‘third way’ between capitalism and communism.
Why did the corporations actually favour employers?
Employers were chosen by other employers to represent them in the corporations however, workers were chosen by fascist officials who were approved by Mussolini. This means that workers are more loyal to fascism and Mussolini than they are to other workers, so policies made won’t benefit workers as they aren’t being properly represented.
What was the Charter of Labour 1927 meant to do?
Guarantee workers rights in employment but it was never followed through.
How did Mussolini benefit from the Corporate state?
It made him look like a strong and ingenious leader who invented a whole new economic system that ended class conflict.
How did fascists benefit from the Corporate state?
It provided jobs for loyal fascists.
What did the IMI policy do to help Italian banks during the Great Depression?
Provided credit to banks to guarantee they wouldn’t collapse.