Main Article Content
The Balkan states have suffered from the monetary crisis of the Thirties as well as from that of the Seventies. The causes were different each time, but in both cases there was no possibility of the states protecting themselves.
The monetary crisis of the Thirties was caused by the shortage of the international liquidity available. Its impact was more readily felt as capital was transferred to places where the danger of exchange control, devaluation, or nationalisation without adequate compensation seemed remote, and not towards the countries where it would secure greater profit.
The world monetary crisis of the Seventies developed with inflation and excessive international liquid capital. Only where inflation and the rate of economic development are high, is the international liquidity not excessive. The influence of this crisis on the Balkan States was not favourable. They reacted through revaluation, even if this was not appropriate in view of the balance of payments deficits, exchange control, and the necessity to continue having recourse to foreign loans and investments.