Rašín's currency reform

- 94 - Rašín's monetary reform This diploma thesis is dealing with the Czechoslovak monetary reform performed in March 1919 whose originator was the first finance minister Alois Rašín. After the dissolution of Austria-Hungary at the end of WWI new-formed Czechoslovakia assumed a heritage in form of totally depreciated currency. The Austro- Hungarian Bank as the central bank of monarchy financed the war through war loan to the state. The central bank de facto became a money printer and the result was galloping inflation. The Aim of monetary reform was mainly to separate the currency from the original Austro-Hungarian currency and create a new own one, eliminate inflation money and appreciate the new currency. The longer-range aim of reform was to connect the Czechoslovak currency with gold, thus to establish the gold standard currency. All preparations for reform passed absolutely secretly. The law about monetary reform was adopted during the secret session of Revolutionary National Assembly on February 25th, 1919. Even that night from February 25th to 26th, the state boundary was enclosed and all communication with foreign countries was interrupted to prevent inflow of Austro-Hungarian money from neighbouring countries. The separation of the currency was executed by stamping of banknotes. The stamping was..