The Dissolution of the Austro-Hungarian Empire : Lessons for Currency Reform

Author/Editor:

Michael G. Spencer ; Peter M. Garber

Publication Date:

July 1, 1992

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 investigates the currency reforms undertaken subsequent to the dissolution of the Austro-Hungarian Empire in 1918. The reforms were motivated by the lack of coordination of monetary policy and the absence of a rule for sharing seigniorage. Because the Successor States’ reforms were not carried out simultaneously, individuals could choose where to convert their crowns based on where their real value was greatest. The cross-border flows of notes was substantial, to the detriment of Hungary which was last to reform. The Austrian and Hungarian currencies were stabilized only with the help of League of Nations financial programs.

Series:

Working Paper No. 92/66

Subject:

Notes:

Investigates currency reforms undertaken subsequent to the dissolution of the Austro-Hungarian Empire in 1918.

English

Publication Date:

July 1, 1992

ISBN/ISSN:

9781451848731/1018-5941

Stock No:

WPIEA0661992

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

50

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