The Dissolution of the Austro-Hungarian Empire: Lessons for Currency Reform
July 1, 1992
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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.
Subject: Banking, Commodities, Credit, Currencies, Currency reform, Financial institutions, Gold, Loans, Money
Keywords: commercial paper, Credit, Currencies, currency, Currency reform, Czech authorities, Eastern Europe, Europe, Gold, government, governments of the successor states, Loans, occupation authority, State note Institute, successor state, War bond, WP
Pages:
50
Volume:
1992
DOI:
Issue:
066
Series:
Working Paper No. 1992/066
Stock No:
WPIEA0661992
ISBN:
9781451848731
ISSN:
1018-5941
Notes
Investigates currency reforms undertaken subsequent to the dissolution of the Austro-Hungarian Empire in 1918.
