National Identity and Money: Czech and Slovak Lands 1918-2008
An expanding literature on money and identity is built around the assumption that political elites deliberately use currency design to foster national identities. However, the empirical evidence in favor of this assumption has been fragmentary. Drawing on detailed primary sources we demonstrate nationalist intentions of political elites involved in currency design. We also examine how political elites use banknotes as official pronouncements on who is and who is not part of the nation and what the official attitude toward foreigners is. By tracing changes in the inclusive and exclusive messages directed at an intra-state or international audience we document that there is no connection between ingroup (national) love and outgroup (foreigners, minorities, opposition) hate. The amount of exclusive messages to outgroups culminated in conditions of perceived threat when political leaders tried to mobilize pre-existing identities to secure or maintain political power. In contrast, the officials deliberately tried to broaden ingroup boundaries in order to build international communities. Finally, we document that in the case of limited support for the new conception of identity, officials tried to depict the old and the new identity as complementary, embedding the new identity in existing discourses.
Trade balance and income shocks: experience of transition economies
This paper investigates the major sources of changes in the trade balance of four Central European and three Baltic transition economies with an emphasis on the difference between permanent and transitory disturbances to income. In all seven countries the findings support the hypothesis that transitory disturbances to income are the main determinants of changes in the trade balance. These results seem to be fairly consistent with inter-temporal models of trade balance, which view transitory shocks to income as the main source of variations in the trade balance. These results do not seem to support the view that productivity shocks alone generate most of the variation in the trade balance.