Zamena austrijskih kruna za dinare 1920. godine (drugi deo)
The Exchange Of Austrian Crowns For Dinars In 1920 (Part Two)

Summary/Abstract: In the second part of this paper we discuss criticism regarding the policy of replacement of crowns with dinars, made by various authors. Their main claim was that the exchange rate of 4:1 was unfair toward owners of crowns, even plundering, because of allegedly equal purchasing power of the dinar and the crown at the time of replacement. However, no emprirical evidence was offered to support that statement. We present the evidence (mostly prices of several agricultural products) which shows that purchasing power of the dinar was significantly higher (probably 3–4 times). Another objection – that government intentionally missed to replace crowns immediately after the formation of the Kingdom of Serbs, Croats and Slovenes – is shown in this paper to be wrong because it was an impossible task for technical and political reasons. These authors even made some catastrophic predictions of economic collapse of the country due to the replacement of money, which never materialized.

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