The historical background is provided by an analysis of the early experience of the Soviet Union and a critical review of the conceptual debate of the 1930s. Subsequent chapters study central planning in the light of the theory of allocation mechanisms, examining information and incentive issues as well as organisational structure. Finally there is a consideration of the macroeconomics of the centralised economy, beginning with an analysis of central planning and shortage and the problems of internal andexternal balance; passing on to issues of innovation, investment and growth. In many countries, especially those in Eastern Europe and theSoviet Union, central planning has been the predominant redource allocation mechanism in the postwar period. Thisbook examines the nature and the mode of operation of the centrally planned economy and assesses its strengths and weaknesses.

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