Czechoslovakia

Czechoslovakia [not itself an emerging economy but the country out of which the Czech Republic and Slovakia later developed] operated a command economy until 1986, then introduced some liberalisation that was initially quite limited but went further from 1991, before the country split into two at the end of 1992.

Years	Targets and attainment	Classification
1974-86	monobank plus specialised state banks covering savings and foreign trade, with limited role for credit controls and interest rates; monetary policy aims to control most financial flows in economy, with focus on managing amount of money in circulation and credit control, and is less fully passive than in other socialist economies; exchange rate fixed vs CMEA currencies, pegged to basket of five convertible currencies with occasional depreciations, more frequent 1980s; illegal parallel market	multiple direct controls MDC
1987-1992	some liberalisation late 1980s/early 1990s, including 1989 monobank split between central and two (Czech and Slovak) commercial banks; 1990 slow start of interbank deposit market, bond issues now allowed; 1989-90 changes to official exchange rates for CMEA countries; peg (since 1981, but changed at intervals) to basket of five convertible currencies; 1989 start of forex auction with limited access; central bank sets discount rate from January 1990, reserve requirements October 1990, credit controls remain important; under new government exchange rate unified, depreciated and  fixed end-1990; January 1991 relatively successful big bang liberalisation plus stabilisation; new banking laws 1992 add to and clarify powers of central bank and define roles of commercial banks, but banking system needs time to establish itself	loosely structured discretion LSD

Selected IMF references: [Czechoslovakia itself was not a member of the IMF, but its successor state, the Czech and Slovak Federal Republic, joined in late 1990, and then divided into the Czech Republic and Slovakia in December 1992] Money, Banking and Credit in Czechoslovakia, 1974, pp1-11, 16, 26-7; Czechoslovakia – Calculation of Quota, 1990, pp10-11, 48-54, 66-70; RED 1990 pp13-17, 21; RED 1992 pp20-3, 28-9, 61-3, 65-6.