De-monetisation, Re-monetisation, and Parallel Currencies in North Korea

Rüdiger Frank ()
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Rüdiger Frank: University of Vienna

Chapter Chapter 4 in Cash in East Asia, 2017, pp 43-61 from Springer

Abstract: Abstract North Korea has been, and arguable still is, an extreme case of a state socialist system. Due to ideological and economic reasons, by the late 1980s, the country had been largely de-monetised in the sense that money existed but was unable to fulfil its basic functions. A massive economic shock resulting from the collapse of the global socialist system after 1990 contributed to a re-monetisation including a reform of the domestic currency from the mid-1990s. Individuals have reacted in a predictable way, thus weakening the power of the state. Currently, North Korea is, in some aspects, more monetised than, for example, East Germany was in 1989, thanks to the de facto existence of parallel currencies. This chapter analyses the process of re-monetisation, its impact on society, and the state’s efforts to curb these effects, which we are only beginning to comprehend fully.

Keywords: North Korean; State Socialist System; Council For Mutual Economic Assistance (COMECON); inflationInflation; East GermanyGermany (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:fimchp:978-3-319-59846-8_4

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DOI: 10.1007/978-3-319-59846-8_4

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