Bahtaraeva Karina
The role of the financial system in Italy’s economic miracle
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This article explains the nature and key factors of Italy’s economic miracle in 1950-1970. These factors include state intervention in the economy and the capital market, export led growth supported by an undervalued lira, high rate of fixed investments and foreign capital. It is also shown how the financial system supported Italy’s economic modernization through credit controls, gradual exchange rate and capital account liberalization, financing of investments and state-controlled financial institutions. 


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