Abstract
The economist JUDr. Alois Rašín (1867-1923) made his mark in the monetary history of Czechoslovakia both by implementing the currency reform in the first half of 1919 and by the policy of deliberate deflation in 1921-1922.
It was intended to reduce the price level so that it approached the pre-war level and then, on a stable price level and a strong domestic currency exchange rate, the long-term goal was to introduce a so-called gold currency. Deflation, unlike inflation, was a rather rare economic phenomenon throughout the 20th century.
Even more exceptional was the process of deliberately inducing deflation. In the present day, Rašín's policy may lead one to reflect on the possible consequences of deliberately influencing the exchange rate.