Economic crises and the development of the industrial state: the industrial intervention of the Bank of Italy and the Bank of England, 1918â€“1939
Although it is little known at least among economists, central banks in industrial countries became involved with industry in the past and particularly after the First World War. This was at least the case in Italy and Britain where central banks provided long-term finance to ailing firms and banks, becoming important industrial players in their countries. This article explores this episode in a comparative setting, and concludes that intervention did not stem from a grand design of policy or from anti-market ideologies. It was, rather, piecemeal and a consequence of financial austerity. It is also argued here that intervention was the outcome of the over-expansion of the heavy industries more than the consequence of the weakness of one particular financial system. Moreover, this history also seems to indicate that the direct management of ailing firms and banks proved less expensive for central banks than the continuous provision of funds to concerns whose managers were alien â€“ and therefore unaccountable â€“ to the central banks' bureaucracy.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:elg:rokejn:v:1:y:2013:i:3:p314-321. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Craven)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.