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:
“We assume that politicians are without honor. We read their statements trying to crack the code. The scandals of their politics: not so much that men in high places lie, only that they do so with such indifference, so endlessly, still expecting to be believed. We are accustomed to the contempt inherent in the political lie.”
—Adrienne Rich (b. 1929)
“In view of the fact that the number of people living too long has risen catastrophically and still continues to rise.... Question: Must we live as long as modern medicine enables us to?... We control our entry into life, it is time we began to control our exit.”
—Max Frisch (1911–1991)
“For I have learned, in whatsoever state I am, therewith to be content.”
—Bible: New Testament St. Paul, in Philippians, 4:11.
“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.