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 East knew and to the present day knows only that One is Free; the Greek and the Roman world, that some are free; the German World knows that All are free. The first political form therefore which we observe in History, is Despotism, the second Democracy and Aristocracy, the third, Monarchy.”
—Georg Wilhelm Friedrich Hegel (1770–1831)
“A “super person” is one who expects to manage a career, home, and family with complete ease, expecting to maintain a perfect job, a perfect marriage, a perfect house, and perfect control of the children.”
—Joyce Portner (late 20th century)
“I also believe that few people remain completely untouched by the thought that instead of the life they lead there might also be another, where all actions proceed from a very personal state of excitement. Where actions have meanings, not just causes. And where a person, to use a trivial word, is happy, and not just nervously tormenting himself.”
—Robert Musil (1880–1942)
“Denouement to denouement, he took a personal pride in the
certain, certain way he lived his own, private life,
but nevertheless, they shut off his gas; nevertheless,
the bank foreclosed; nevertheless, the landlord called;
nevertheless, the radio broke,
And twelve o’clock arrived just once too often,”
—Kenneth Fearing (1902–1961)