Options for Resolving the ‘Bad-Asset Problem’

  • Horst Tomann

Abstract

Thinking about the bad-asset problem, I recognised to my surprise that there were long-term contracts in state socialism. In particular, a banking system existed collecting private households’ savings and lending money to firms. However, money assets and liabilities did not reflect market relations. Savings banks, being branches of the East German Staatsbank, were not competing for deposits. On the other hand, the government controlled investment and allocated credits of firms according to devices of the plan.

Keywords

Europe Income Monopoly Nised 

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1997

Authors and Affiliations

  • Horst Tomann

There are no affiliations available

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