(Gosudarustvennyi Bank SSSR: the State bank of the Soviet Union), which combined the roles of a central bank and a commercial bank, dominated the Soviet monetary economy.
He said: "I find it absolutely bewildering because RBS occupies the same status in the economy as Gosbank
did in the Soviet Union: it's a state-owned bank."
Either it could step in and provide an enormous amount of credit directly to households and firms (much like Gosbank
, the Soviet Union's central bank), or it could stand by idly while GDP falls 20-30 percent - the magnitude of decline that we have seen in modern economies when credit suddenly dries up.
The currency equivalent of gold sold to the Gosbank
for purposes other than repayment of Republican debts was transferred to the Soviet bank in Paris (BCEN) where the Republican government had opened a network of accounts.
Viktor Yushenko comenzo su carrera en el gran banco sovietico Gosbank
, el cual se desintegro en los anos finales de la Union de Republicas Socialistas Sovieticas (URSS).
The size of the country and the late introduction of an electronic payment system have made it difficult to manage the take-over from Gosbank
, whose subsidiaries used to be responsible for all inter-bank payments.
Audit was not a concern in Soviet times because resources of state enterprises and institutions were in controlled accounts in the state bank (Gosbank
Hence the Gosbank
and its sister banks operated as monitors of financial and transfer flows and not as active determinants of monetary policy or as active participants in investment decisions.
The former head of Gosbank
, the Soviet central bank, Gerashchenko has vowed to keep the printing presses rolling, pumping billions more rubles into Russia's already inflated economy.
The debate over price reforms is outlined in an EKO roundtable discussion entitled "What Path Should We Take." This is followed by an article by Rutgaizer, Shmarov and Kirichenko and with an interview with the Chairman of the USSR State Committee for Prices and the Board Chairman of Gosbank
. What is surprising is that they all agree with Western monetarist thinking that price inflation is a necessary tool for reducing what they consider is an excessive level of demand.
Victor Gerashchenko, former chairman of the Gosbank
(the central bank of the USSR) was likewise seen as confirming earlier moves to ease somewhat the attempted credit squeeze on industry.