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Comecon Monetary Mechanisms. A history of socialist monetary integration (1949 – 1991)

Author

Listed:
  • Faudot, Adrien
  • Marinova, Tsvetelina
  • Nenovsky, Nikolay

Abstract

Today's fragmentation of the world economy, the emergence in the near future of large economic blocs operating in different ideological and conceptual models of economy and society, and the fierce struggle for resources and influence, logically lead us turn to history, including the recent one. The issue of the functioning and collapse of the socialist monetary community has another, more specific but also topical meaning. It has to do with understanding the mechanisms of disintegration of the European Union and the euro area, its management and eventual overcoming. In this paper, we focus on the study of monetary mechanisms within the socialist system, and more specifically on its model of integration, the Comecon, which lasted from 1949 to 1991. In the first part we present the basic principles of socialist integration and the role of international socialist money. In the second part we present the main stages in the evolution of the monetary mechanisms of Comecon. The third part is devoted to some technical problems of multilateral payments and the peculiarities of the transfer ruble. Finally, we try to compare with European Payment Union. We present some competing hypotheses, answering the question why the monetary system of Comecon failed.

Suggested Citation

  • Faudot, Adrien & Marinova, Tsvetelina & Nenovsky, Nikolay, 2022. "Comecon Monetary Mechanisms. A history of socialist monetary integration (1949 – 1991)," MPRA Paper 114701, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114701
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    References listed on IDEAS

    as
    1. George Garvy, 1977. "Introduction to "Money, Financial Flows, and Credit in the Soviet Union"," NBER Chapters, in: Money, Financial Flows, and Credit in the Soviet Union, pages 1-12, National Bureau of Economic Research, Inc.
    2. Eric Magnin & Nikolay Nenovsky, 2021. "Calculating without money. Theories of in-kind accounting of Alexander Chayanov, Otto Neurath and the early Soviet experiences," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 28(3), pages 456-477, May.
    3. D. M. Nuti, 1986. "Hidden And Repressed Inflation In Soviet-Type Economies: Definitions, Measurements And Stabilisation," Contributions to Political Economy, Cambridge Political Economy Society, vol. 5(1), pages 37-82.
    4. Michel Lelart, 1986. "Le Système international du rouble et les relations monétaires et financières Est-Ouest," Post-Print halshs-00289437, HAL.
    5. George Garvy, 1977. "Appendix to "Money, Financial Flows, and Credit in the Soviet Union"," NBER Chapters, in: Money, Financial Flows, and Credit in the Soviet Union, pages 190-218, National Bureau of Economic Research, Inc.
    6. C. H. McMillan, 1974. "The Bilateral Character Of Soviet And Eastern European Foreign Trade," Journal of Common Market Studies, Wiley Blackwell, vol. 13(1), pages 1-20, September.
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    More about this item

    Keywords

    socialist integration; Comecon; transferable ruble; European Payment Union; Soviet Union; commodity-money relations; multilateral clearing;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F15 - International Economics - - Trade - - - Economic Integration
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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