Banknote remittances: Italy’s recent experience

Abstract

Since the end of 1958, when the principal European countries returned to external convertibility, policy-makers have once again had to face the problems raised by the international movement of funds. In the case of Italy, one of the most striking consequences of the new international monetary situation has been the rapid increase of banknote remittances, which, though almost nonexistent in 1958, reached 349 billion lire in 1966. The present study singles out and appraises quantitatively the factors that have given rise to the volume of banknote remittances from 1962 to the beginning of 1967. To this end, an attempt is made, by using multiple linear regressions, to verify the validity of the assumptions put forward by the monetary authorities, while appropriately integrating them.

JEL: E42, F20, F32