Czechoslovak crown in the inter-war period: The glorious years 1929-1931 (CZK as a gold-based and externally convertible currency)

This article traces the evolution of the Czechoslovak crown from its post-w ar stabilization to its proclamation as a gold currency in 1929. The author presents the explanation and criticizes the method of legal introduction b y which the crown was declared a gold curency. He describes the first perio d of the Great Depression and the consequences of the collapse of internati onal trade and capital flows for a small, open economy. An increasing exter nal imbalance, he concludes, was to blame for the abolition of the free con vertibility of the Czechoslovak crown in October.