PÁLENÍK, Viliam. Was the Czechoslovak Monetary Reform of 1953 Necessary? – An Economist's Perspective

In 1945, a monetary reform took place in Czechoslovakia, achieving its monetary reunification. With the coup d'état in February 1948, the Communist Party of Czechoslovakia completed the process of its takeover of power, after which it began an ambitious first five-year plan, completed the nationalization of companies, the liquidation of tradesmen, and promoted the collectivization of agriculture. This led to a surplus of household purchasing power, which was the main reason for the drastic monetary reform in 1953. Our quantitative and qualitative analysis of the post-1945 economic and political development indicates that the main cause of the 1953 monetary reform was the ill-considered economic policy of the ruling Communist Party, driven by its political goals, to which it inadvertently sacrificed our monetary stability and the people's living standards. If this had not happened, the 1953 monetary reform would probably not have had to take place.