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Regular version of the site

Article

Post-Communist Transition and Monetary Disintegration

CESifo Forum. 2016. Vol. 17. No. 4. P. 3-11.

Political and economic changes in Central and Eastern Europe (CEE) and the former Soviet Union (FSU) at the end of 1980s and early 1990s resulted in just two episodes of monetary disintegration. Firstly, the end of Soviet geopolitical control over CEE led to the demise of the Council for Mutual Economic Assistance (CMEA or Comecon) and its quasi-currency – the transferable ruble (TR). Shortly afterwards, the political disintegration of the Union of Soviet Socialist Republics (USSR), Yugoslavia, and Czecho-Slovakia also caused monetary disintegrations. The newly independent successor states adopted their own currencies, however only the separation of the Czecho-Slovak crown (koruna) into two new currencies was conducted in and orderly manner, and without major macroeconomic turbulences and trade disruption.