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:
“The political arena leaves one no alternative, one must either be a dunce or a rogue.”
—Emma Goldman (1869–1940)
“Culture means control over nature.”
—Johan Huizinga (1872–1945)
“I was never lost, but I was bewildered once for three days.”
—Administration in the State of Miss, U.S. public relief program (1935-1943)
“I know a bank where the wild thyme blows,
Where oxlips and the nodding violet grows,
Quite overcanopied with luscious woodbine,
With sweet musk-roses, and with eglantine:
There sleeps Titania sometime of the night,
Lulled in these flowers with dances and delight.”
—William Shakespeare (1564–1616)