Socialist economic thought and policy were for a long time dominated by a restricted view of the role of money. On ideological as well as practical grounds it was widely believed that under Socialism all functions of money should be strictly planned by the State. It was accepted that the role of money should be reduced to that of a passive recording and accounting device, to facilitate the administration and control of planned production and distribution, and that it should wither away under ‘full communism’.
KeywordsInterest Rate Central Bank Banking System Foreign Trade Investment Finance
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