Ravenna Effect: The new inflationary capital and the lasting Weimar Effect

Changing the capital of the country does not produce major cultural changes nor does it affect the economic behavior of market agents, as long as the residence of the president of the Republic or the monarch is not installed in the new headquarters. However, the newly installed residence of the chief of state in a city without status of secular capital, of at least 125 years, leads to persistent economic crises, brought about by high prices, lasting more than a century, even if this change of residence is not made official by law.