Adjusting to Financial Instability in the Interwar Period

The chapter provides a reconstruction and analysis of adjustment processes in the Italian financial system after the major cleavage of the First World War. It considers how pressures exerted by external factors entailed a progressive adaptive strategy to a changing international environment. Financial and monetary instability called for a more intensive regulation reallocating responsibilities and powers from the private sector to the public sphere. Accordingly, financial elites changed their contours and boundaries. As the demand for technical competences and bargaining abilities rose, Italian governments and central monetary authorities tended to co-opt competent representatives from the private sector onto special committees at home, at international conferences, or in bilateral negotiations. A telling tale of such processes is represented by changes within the composition of the Italian delegations at major international economic and financial conferences from the Brussels Conference in 1920 to the London Economic and Monetary Conference in 1933.