Foreword

Summary

A history of Italian monetary policy from 1861 to 1991 is a history of the Bank of Italy, the country's central bank, and its relations with the government and with other banks that serve the public. Readers of this volume will find a narrative and analytical study of the internal and external events that shaped that history. Rather than summarise what the authors have themselves done so well, let me comment on how the Bank of Italy compares with other central banks.

No two central banks are alike in structure and culture. Each bears the impress of its history. In some respects the Bank of Italy's history makes it unique. A law of 1894 required it to have a branch in each of the country's 95 provinces with a total of 99 which included two branches in Rome and Milan and one in Naples. The branches, however, are organised in 14 regional groupings, which are comparable with the 12 Federal Reserve districts, with which they share similar responsibilities for supervision of local banks, and the provision of currency and cheque clearing. Like the Federal Reserve Banks the Bank of Italy is not owned by the government. Its shareholders are banks and insurance companies.

The Bank of Italy High Council, comparable with the Federal Reserve's Open Market Committee, determines policy. It chooses the Governor subject to government approval. He can hold the office for long periods since there is no prescribed term. The Council includes the governor, who is chairman, and 13 members with no active political ties whom the shareholder banks choose to represent the regions. They serve for three years.