Development, Structure and Resolution of Czechoslovak State Debt from 1945 to 1953

This article focuses on the development and resolution of Czechoslovak state debt from 1945 to 1953. It describes two distinct periods. Between 1945 and 1948, the budget followed a prewar structure where debt constituted a separate part. These times were characterized by an increase of state debt as a result of a postwar economic reconstruction. From 1949 to 1953 the structure of the state budget was adapting to its new function in the economy and the amount of the debt appeared to stabilize. The most important subject of controversy is the solution chosen in 1953. The monetary reform imposed in that year brought an overall nullification of internal state liabilities. There were two reasons for this decision: to substantively break away from the past and to substantially reduce the value of financial assets held by the wealthier segment of society.