ABSTRACT
The Marxists' views on money have always been negative, largely a reaction against capitalism where money reaches its peak of development and influence. The role of money has been substantially enhanced by the economic reforms. The increasing importance being attached to monetary policy is indicated by the growing number of publications on the role of money, credit and banks. The banking system in each Socialist country is socialized, highly centralized and operating on a branch basis. Banking policy is in a sense a more powerful weapon because there is no short-term money market, no stock exchange and no 'fringe' banking institutions. The overall banking policy in each Socialist country is laid down by the Ministry of Finance in close co-operation with the State Planning Commission and the State Bank. Banking operations are subordinated to the needs of the economic plan, in which the overall and major structural developments are predetermined.
