Central plan

Monetary management - reduced in the specific concept of monetary functions to strict and administrative management of currency, prices, wages, foreign exchange and exchange rates - was part of central national economic plans, which were constructed as five-year plans and specified for individual years as annual implementation plans. The development of consumer prices and wages was regulated particularly carefully. The situation was more complicated in determining the exchange rate and in managing foreign exchange relations in general. The unrealistic determination of the koruna's exchange rate in 1953 against the dollar as a representative of freely convertible currencies and the world's major reserve currency had serious consequences in disrupting the whole system of value relations - input prices to economic calculation, output prices from economic calculation and complete detachment of domestic prices from foreign ones. prices, especially in addition to socialist and non-socialist countries. Administrative management methods found it difficult to maintain a trade balance. Price differences in exports and imports – i.e. import and export prices converted at the official exchange rate compared to internal wholesale prices - were automatically offset by the state budget, directly with monopoly foreign trade organizations. Some of these price differences were passed on to wholesale and retail prices.