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The Dissolution of the Austro-Hungarian Empire: Lessons for Currency Reform
Author:
Mr. Michael G. Spencer null

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Mr. Peter M. Garber null

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Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 066
Language:
English
Publication Date:
01 Jul 1992
DOI:
https://doi.org/10.5089/9781451848731.001
ISBN:
9781451848731
ISSN:
1018-5941
Pages:
50
Keywords:
WP; government; successor state; State note Institute; currency; commercial paper; War bond; occupation authority; governments of the successor states; Czech authorities; Currencies; Currency reform; Loans; Gold; Credit; Eastern Europe; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund