Exchange Control in Italy and Bulgaria in the Interwar Period: History and Perspectives

Abstract

This paper analyses exchange control in  Italy and Bulgaria during the interwar period.  Starting with the chronology of events,  the study provides a detailed account of  the institutional and economic framework  in which these measures were enforced  and interprets them by exploring various  sources of information and data. Moreover,  it suggests a theoretical interpretation of  exchange control measures stressing that  these policies were a serious interference  in market mechanisms. A further point is  that exchange control in both countries was  an eloquent example of how serious the  balance of payments constraint was at that  time and how difficult it was to circumvent  it. Subject to discussion, the paper derives  some lessons for today’s economies.