Privatization of Money

One of the strategic choices at the beginning of the Czech transition was to rely on the banking sector as a financial backing of the transition. The Government rhetorically proposing market but implicitly pursuing a velvet transition did not privatize the big banks. As a result Czech economy found itself in a reform trap at the end of the transition decade. The book goes back and tracks the strategic decisions of the policy makers. A special interest is paid to the banking supervisor, the Czech National Bank. CNB cooperated with the Government as the principal owner of the big banks and embarked on a kind of fiscal speculation. The absorbtion capacity of the big banks did not help to avoid a heavy burden of classified loans. It rather aggravated it by postponing the solution. That invited excessive risk taking and fraud along with just "financing transition."

Autorentext

Roman Pazdernik graduated at the Institute of Economic Sciences, Charles University in Prague in 2003. Currently he is interested in research on creative class, creative cities and economic change towards the creative economy. He lives in Prague with wife and two children.