Political Control of The State Bank
Although the State Bank was always politically subordinate to the G.D.R. government, this was made explicit by a law of 19 December 1974 which defined the State Bank as an organ of the Council of Ministers of the German Democratic Republic and formalised the practice of the Bank’s president being a member of the Council of Ministers. While this stood in stark contrast to the political independence of West Germany’s Bundesbank it was common during this era for there to be political control over the nation’s Central Bank-–though not usually to the extent found in East Germany and the other Eastern Bloc economies, where the polices and technical operation of the Central Bank were completely subservient to policies of the governing Socialist Unity Party of Germany.
The State Bank of the GDR was also a member of the International Bank for Economic Co-operation, a Comecon organisation founded in 1957 with its headquarters in Moscow. The nominal currencies used for trading, international clearing and settlement purposes by this organisation were transfer roubles and gold reserves.
Read more about this topic: Staatsbank
Famous quotes containing the words political, control, state and/or bank:
“A sincere and steadfast co-operation in promoting such a reconstruction of our political system as would provide for the permanent liberty and happiness of the United States.”
—James Madison (1751–1836)
“The three-year-old who lies about taking a cookie isn’t really a “liar” after all. He simply can’t control his impulses. He then convinces himself of a new truth and, eager for your approval, reports the version that he knows will make you happy.”
—Cathy Rindner Tempelsman (20th century)
“The man who would change the name of Arkansas is the original, iron-jawed, brass-mouthed, copper-bellied corpse-maker from the wilds of the Ozarks! He is the man they call Sudden Death and General Desolation! Sired by a hurricane, dam’d by an earthquake, half-brother to the cholera, nearly related to the smallpox on his mother’s side!”
—Administration in the State of Arka, U.S. public relief program (1935-1943)
“We bank over Boston. I am safe. I put on my hat.
I am almost someone going home. The story has ended.”
—Anne Sexton (1928–1974)