Central Banking in Central and Eastern Europe: Lessons From the Interwar Years' Experience

Author/Editor:

Marcello De Cecco

Publication Date:

October 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the philosophies which inspired the institution of central banking in Central and Eastern Europe in the interwar years. Influenced by the Financial Section of the League of Nations, the new central banks adopted laws which prohibited or severely restricted the financing of government fiscal debt. They were encouraged to centralize their payments systems and manage exchange rates to keep control of the money supply and achieve monetary stability. Before long they were forced to adopt further provisions in the area of banking supervision to regulate commercial banks. This paper considers the particular cases of Czechoslovakia, Hungary and Poland.

Series:

Working Paper No. 1994/127

Subject:

Bank credit Bank legislation Bank supervision Banking Central bank legislation Central banks Commercial banks Financial institutions Financial regulation and supervision Open market operations

English

Publication Date:

October 1, 1994

ISBN/ISSN:

9781451854954/1018-5941

Stock No:

WPIEA1271994

Pages:

36

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