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SummaryCONSEQUENCES OF POLISH MONETARY REFORM FOR CZECHOSLOVAK ECONOMY IN 1950Arkadiusz Markowski1950 Poland faced serious economic problems due to strenuous country's socialist industrialization. In fact, Polisheconomy needed a huge money inflow for the approaching six-year investment plan. The Monetary Reform, whichwas carried out on 28 October 1950, was supposed to be the real solution for gaining new financing indeed.The regime propaganda presented it in light of fighting with speculation and capitalistic spheres. The exchange rate,which was officially set up, however, was much lower than real currency purchasing power those days. As a result,the state budget got extra money but this monetary trick neither stopped increasing inflation nor made the moneycirculation balanced. In fact, people with savings and cash positions beyond an official threshold as well asbondholders of Treasury bonds issued before 1945 lost immense amount of money. From day to day, two thirdsof total private savings evaporated. This Reform had profound implications outside the country as well. Inthe border regions of Czechoslovakia and large urban centers such as Prague and Brno, where the latest news camefrom Poland, there was a significant increase of demand for consumer goods like textiles, watches, shoes,motorcycles, electrical equipment, sewing machines or radios. Moreover, consumer staples like food and beveragesproducts were bought intensively. People expressed no interest in buying such products like glassware, porcelain andceramics.The monetary situation stabilized in mid-November when everything went back to normal. To sum upthe impact, which Monetary Reform had on the economy it was a banknotes’ base cut-off and extra gains forthe Treasury. Changes in Poland hardly affected area of Slovakia, where increased activity with money exchange wasrecorded only in the province of Žilina. Importantly to note is that Polish Monetary Reform did not affect traderelations between Poland and Czechoslovakia, as all transactions were nominated in Deliveredat Czechoslovak-Polish Frontier, which at that time were calculated based on Czechoslovak crowns.219