The purpose of this diploma thesis is to summarize a comprehensive picture of monetary development of former Czechoslovakia within period 1918-1938. The initial introduction concerns monetary and economic development by 1926. The following chapter analyses establishing of National Bank of Czechoslovakia as a significant event in the history of local monetary policy. In a detailed major section, the thesis explains the activities of central bank concluded during either in conjuncture or economic financial crisis. This study hopes to offer the overview of key historical events such as the establishment of gold parity standard in 1929 or double currency depreciation in the 1930's. With regards to final chapter, prewar development as well as the consequences of economic financial crisis are evaluated in terms of monetary policy
