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.
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