Monday, 17 June 2019

corso forzoso

Though the idea of bringing back the lira has been in circulation by members of both factions of the governing coalition since at least 2005 and at earlier times of economic crisis and scarcity of specie, a sort of Notgeld, called miniasegni, were used to make change—anything from postage stamps to bus passes, Italy is now responding in a unique and novel way to European Union demands that it pass budget reforms and bring its deficit in line with members’ tolerances in suggesting that a parallel currency be introduced.
Provisionally naming the government backed bonds, IOUs to be traded as legal tender mini-BOTs, miniature bills of treasury, the government wants to issue internal financial vehicles that can be used to pay tax bills and distribute pension payments—with businesses having the option whether or not to accept payments in these terms. While in the short term, the introduction of mini-BOTs may rally public confidence in a partnership government that in part was elected on a platform of universal basic income (disappointingly winnowed down to a job-seekers’ allowance) and avoids austerity measures, such a move would result in inflation and more odious debt.