By J Wilczynski
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Extra resources for Comparative Monetary Economics: Capitalist and Socialist Monetary Systems and their Interrelations in the Changing International Scene
16 This is noteworthy, considering the advanced stage of economic development attained by some of these countries (especially Czechoslovakia, the German DR, Hungary, Poland and the USSR). The only Socialist country in which a sort of a financial market is developing is Yugoslavia. l7 In 1975, 6o commercial banks signed an agreement to establish a money market. It is to be an interbanking organization designed to attract idle funds of the banks and other financial institutions, and to satisfy financial needs of the economy.
B) Control through the Wage Funds. The wage funds in the Socialist countries (except Yugoslavia) are planned for each enterprise and reflect the economic plan and the target allocated or implied. The State Bank exercises current control over wage payments by advancing cash to the socialized entities in accordance with the approved plan. , 1959, pp. 220-1. 20 W. Jaworski, Banki i kredyt w europejskich krajach socjalistycznych [Banks and Credit in the European Socialist Countries], Warsaw, PWN, 1971, p.
F. , 1975. 7 This being the case, bank failures occasionally mark the financial scene, with all the adverse repercussions on the economy, such as those during 1973-74, caused largely by currency speculation. 8 'Extension of State Ownership of Central Banks', Intern. , MayJune 1974, PP· 46-9. A. Development and Structure 21 centres of the whole capitalist system .... Only by nationalising the banks can the state put itself in a position to know where and how, whence and when, millions and billions of rubles flow.