IMF Working Papers

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

By Michael G. Spencer, Peter M. Garber

July 1, 1992

Preview Citation

Format: Chicago

Michael G. Spencer, and Peter M. Garber The Dissolution of the Austro-Hungarian Empire: Lessons for Currency Reform, (USA: International Monetary Fund, 1992) accessed November 24, 2024
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.

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

Publication Details

  • Pages:

    50

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • 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.

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