
Contents
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The Antinomies of Centralization The Antinomies of Centralization
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The Organization of Banking The Organization of Banking
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Centralization and State-Building Centralization and State-Building
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Mild and Radical Decentralization Mild and Radical Decentralization
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Liberal Decentralization Liberal Decentralization
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Centralization and Creditworthiness Centralization and Creditworthiness
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American Dreams American Dreams
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Conclusions Conclusions
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5 Italian elites and the Centralization of Creditworthiness
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Published:April 2013
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Abstract
This chapter looks at the political foundations of creditworthiness in the case of 19th century Italy. Here, just like in the United States, economic and political communities commanded strong, local loyalties; however, the political authorities that administered them were infrastructurally weak, and their lack of administrative capacity impaired the regional elites’ ability to enforce law, stability and order on the territories they governed. The chapter discusses the positions of elite political movements that, with such administrative concerns in mind, debated whether Italy’s financial structure should be centralized, or decentralized, with the right to issue money distributed among several institutions, or, in the argument of certain liberals, rendered completely free (mimicking the US model). Given the lack of strong, legitimate local institutions, the Italian central state was eventually forced to play a directive role in the national financial system.
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