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:
“I would like you to understand completely, also emotionally, that I’m a political detainee and will be a political prisoner, that I have nothing now or in the future to be ashamed of in this situation. That, at bottom, I myself have in a certain sense asked for this detention and this sentence, because I’ve always refused to change my opinion, for which I would be willing to give my life and not just remain in prison. That therefore I can only be tranquil and content with myself.”
—Antonio Gramsci (1891–1937)
“Just as men must give up economic control when their wives share the responsibility for the family’s financial well-being, women must give up exclusive parental control when their husbands assume more responsibility for child care.”
—Augustus Y. Napier (20th century)
“He believes without reservation that Kentucky is the garden spot of the world, and is ready to dispute with anyone who questions his claim. In his enthusiasm for his State he compares with the Methodist preacher whom Timothy Flint heard tell a congregation that “Heaven is a Kentucky of a place.””
—For the State of Kentucky, U.S. public relief program (1935-1943)
“When she could hide him no longer she got a papyrus basket for him, and plastered it with bitumen and pitch; she put the child in it and placed it among the reeds on the bank of the river.”
—Bible: Hebrew, Exodus 2:3.