Lithuanian Banknotes 1
0.50 Talonas 1991 Issue P31

View Image Gallery >

Front
Enlarge   
Back
Enlarge   

Note Details

Set Details
Note Description: Lithuania, Bank of Lithuania
0.50 Talonas 1991 - Wmk: Design
Grade: 65 EPQ
Country: LIT
Note Number: LIT31b
Signatures/
Vignettes:		 - With 3 Lines of Text
Certification #: 1831521-018  
Owner: Evaldas
Sets Competing: Lithuanian Banknotes 1  Score: 59
Lithuania Talonas Set  Score: 59
Date Added: 2/26/2019
Research: See PMG's Census Report for this Note

Owner's Description

The first Talonas reform 1991
Bank of Lithuania - Lietuvos Bankas

On 5 August 1991, as a response to public complaints about inflation, the Lithuanian government introduced the talonas, paid out as a supplement to the salaries in rubles.[2][3] It was a quick and unforeseen reform pushed by the Prime Minister of Lithuania Gediminas Vagnorius. At first, it was very similar to ration coupons: every person received 20% of his/her salary in talonas up to a maximum of 200 talonai. In order to buy goods other than food, the price had to be paid in roubles and again in talonas (for example, if a product cost 50 roubles, a person had to pay 50 roubles and 50 talonai to buy it).

This system was widely criticized. First of all, in no way did it address the reasons why there were shortages of goods, i.e., it did not promote supply; it just limited demand. Also, the demand for expensive goods (like home appliances) dropped sharply because people needed a lot of time to accumulate the necessary amount of talonas to buy them. It caused bottlenecks in the supply chain and further damaged already troubled production. In addition, the scheme could not prevent hyperinflation of the rouble because the talonas was not an independent currency; it was a supplementary currency with a fixed exchange rate to the rouble. The system tried to encourage Lithuanians to save 80% of their salaries. But people accumulated their roubles and had nowhere to spend them. It led to the inflation of goods that did not require the talonas (like food or goods on the black market).

To follow or send a message to this user,
please log in