Sunday, February 20, 2005

Italy, Economic and political crisis

Italy was faced with serious postwar economic problems. Wartime governments had printed money to pay for arms, and inflation became deep-rooted: by the end of 1920 the lira was worth only one-sixth of its 1913 value. Savings became worthless, and landowners found themselves receiving insignificant rents. Meanwhile the major arms and shipbuilding firms went bankrupt after