THE NEW LIRA: COSMETIC OR CURRENCY?
The new Italian lira, which will be worth 1,000 of the old, is due to appear next year. It is intended to make accounting easier and to reduce domestic inflation. Will it be more than a symbolic gesture?
That depends on the supporting policies. If government spending is curtailed, the immense public sector deficit reduced and monetary growth brought into line with a steady rate of economic growth, the new lira may help.
It will be a fairly large unit, worth about $0.65,
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
