THE FAILURE OF THE FIRST ROMANIAN CENTRAL BANK: BAD DESIGN, BAD LUCK, OR BOTH?

Tudor Smirna

CES Working Papers, 2015, vol. 7(2A), issue 2a, 627-636

Abstract: In this paper we will analyze the failure of the National Bank of Moldavia, a bank that was chartered by the Principality of Moldavia in 1856, to act primarily as a privileged source of liquidity for its economy. Although the project of a state chartered, privileged bank was planned many years in advance by the princes of the Romanian Principalities, the National Bank of Moldavia suspended payments shortly after its establishment, in early 1858, and had its charter revoked. We will discuss, from the point of view of modern monetary thought, the ideas that were advanced in the justification of its creation, and in the rationalization of is failure. We will analyze the structure of the credits and other problems in its balance sheet. Also, we will study the role that the Crisis of 1857, and the already emerging European economic integration, had in its demise.

Keywords: central banking; international relations; government policy; crisis (search for similar items in EconPapers)
JEL-codes: E5 F54 G01 G28 N23 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ceswp.uaic.ro/articles/CESWP2015_VII2A_SMI.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jes:wpaper:y:2015:v:7:i:2a:p:627-636

Access Statistics for this article

More articles in CES Working Papers from Centre for European Studies, Alexandru Ioan Cuza University Contact information at EDIRC.
Bibliographic data for series maintained by Alupului Ciprian ().