20 Lire (End of World War I) – Italy

By 1928, Italy’s currency situation was firmly under the control of Benito Mussolini’s Fascist regime, which sought to project an image of strength and stability. The decade had begun with economic turmoil, including a sharp depreciation of the lira and high inflation following World War I. Mussolini, viewing a weak currency as a sign of national humiliation, famously pledged to "defend the lira at all costs" in his 1926 Pesaro speech. This led to a painful period of deflationary policy, with high interest rates and wage cuts, successfully revaluing and pegging the lira at an artificially high rate of "Quota 90"—90 lire to the British pound.

This revaluation was a political triumph for Mussolini, symbolizing Fascist discipline and restoring prestige, but it came at a severe economic cost. Italian exports became more expensive and less competitive on the global market, hurting key industries like textiles and agriculture. The resulting pressure on businesses and workers suppressed domestic consumption and contributed to rising unemployment. The regime masked these problems with extensive propaganda, celebrating the "battle for the lira" as a victory for national will over market forces.

Consequently, the lira in 1928 was stable but overvalued and rigidly managed, its value dictated by political dogma rather than economic reality. The currency was supported by strict capital controls and the regime’s authority, insulating it from market pressures but also from necessary adjustments. This situation left the Italian economy structurally weaker and more vulnerable, a fragility that would be fully exposed during the global Great Depression that began the following year.