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The article deals with Italian inter-war debts against the background of the contentious international issue of war reparations that many Allied nations wanted to link to war debt repayments. Italy, having first achieved an extremely large haircut by restructuring US and UK debts in 1925-6, defaulted in 1934, after the Lausanne conference of 1932 failed to deliver war debt forgiveness. We construct a new series of Italian foreign debt from 1925 to 1934 that is consistent with the unfolding of relevant historical events. Starting in 1926, our values are much lower than the currently available foreign debt series. The reason is that the current series do not take into account the large haircut that Finance Minister Volpi extracted from the London debt accord of 1926. Then, beginning in 1932, the values of our series exceed the currently available series because we date the formal Italian exit of the US war debt to 1934, whereas the current series dates it to 1932, at Lausanne. [ABSTRACT FROM AUTHOR]

The article discusses a closed economy and the relationship between price and production adjustments and how this effects unemployment or stagflation. Of particular interest for this article is the independence that the authors believe is shared by production and inflation from fiscal policy as it is laid out by the government. Another point is that production and inflation, while related somewhat, are also independent of the other. Two more points are that only per capita subsidy money is able to maintain steady-state inflation and that wages impact the price of consumer goods.

The article presents case studies of three countries and an examination of fiscal and monetary policies in moderate inflation. The authors look at mild or moderate inflation, seen in developed countries, post World War II. The article concerns itself with monetary and fiscal policy and domestic and international influences on price changes in the United States, Germany, and Italy.

Proposes a portal solution in which the financial centers of the U.S. and Great Britain set best practices on international financial standards. Description of an international financial architecture; Role of the financial centers in dealing with international systemic issues.