how did the great depression affect the italian economy
Economic history of Italy Italy had emerged from World War I in a poor and weakened condition. The National Fascist Party of Benito Mussolini came to power in Italy in 1922, at the end of a period of social unrest. During the first four years of the new regime, from 1922 to 1925, the Fascist had a generally laissez-faire economic policy: they initially reduced taxes, regulations and trade restrictions on the whole.[15] However, "once Mussolini acquired a firmer hold of power... laissez-faire was progressively abandoned in favour of government intervention, free trade was replaced by protectionism and economic objectives were increasingly couched in exhortations and military terminology."[16] In 1929, Italy was hit hard by the Great Depression.[17] Trying to handle the crisis, the Fascist government nationalized the holdings of large banks which had accrued significant industrial securities.[18] A number of mixed entities were formed, whose purpose it was to bring together representatives of the government and of the major businesses. These representatives discussed economic policy and manipulated prices and wages so as to satisfy both the wishes of the government and the wishes of business. This economic model based on a partnership between government and business was soon extended to the political sphere, in what came to be known as corporatism.