New Economic Policy

January 7, 2014


Comments Off on New Economic Policy

Directorate of the Soviet Economy After the Civil War and launched the New Economic Policy talent fully shifted to the construction of Soviet economic bases. He was Commissioner of Finance from 1922 to 1926. Initially formed a triumvirate with Yevgeni Preobrazhensky (which became his opponent as completely opposite ideas posited) and the U.S. educated economist PM Krasnoshchekov, who became head of the Industrial Bank (Prombank). Sokolnikov uniquely finished exercising office when Preobrazhensky vision was discarded and their proposals were approved: the new financial policy established a firm monetary system, structuring a healthy budget with tax dollars and progressive strengthening of the banking and state cr.Since before the war, the Tsarist government had been increasing emissions of money, which increased during the World War and later during the civil war when the government revolucinario went to the same formula to ensure military operations. Sokolnikov found that the general peace could not endure the extreme inflation reached the Conditions by which severely affected the lives of workers. Interrelated reforms with the need to consolidate the Russian revolution, so that the European proletariat could avoid another world war or to advance the international revolution. In the eleventh party congress (March-April 1922) had to discuss in depth with Preohrazhenskii, Strumilin, Krasin and Larin and stated that the “printing of money is the opium of the people.” Congress set up a committee to prepare a final thesis based on Sokolnikov. Sokolnikov believed that the state banking system was the crucial lever for the economy right direction.The Gosbank founded in January 1922 in Moscow, opened 21 branches, which reached 389 in 1924. also urged a network of banks: industrial, agricultural, cooperative, regional … supremaci a of Gosbank under which a central bank gold reserves increased and stabilized the monetary amsa. At the beginning of 1922, the emission of money covered 95 percent of state spending at the end of the year the figure fell to 35 percent and for May 1923 to only 16 percent. In 1924 emissions were stopped money. The Soviet state had for the first time with a stable currency.Sokolnikov listed the achievements during these years: “The organization of the Commissariat of Finance, the creation of a budget deficit not strong, the natural tax settlement and organization of a system of taxes and monetary income, the introduction of modernity firm, the creation of a system of banking institutions led by the state central bank, the organization of the cr operations of the state (short-term and long term loans), differentiation of the central state and local budgets , the introduction of the discipline and financial responsibility.