By P. Hare
Examines the character and the mode of operation of the centrally deliberate financial system, assessing its strengths and the weaknesses that at last resulted in its demise.
CENTRAL making plans; Copyright; relevant making plans; Copyright; Contents; creation to the sequence; Preface; checklist of Figures and Tables; 1. advent; 1.1. improvement of the belief of making plans; 1.2. Emergence of significant making plans within the Soviet Union; 1.3. The Nineteen Thirties debate at the feasibility of making plans: serious evaluation; 2. making plans as a source Allocation Mechanism; 2.1. Definition of making plans: a descriptive technique; 2.2. Definition of making plans: analytic method; 2.3. Decentralisation; three. details and Incentives; 3.1. Horizontal and vertical details flows. 3.2. Aggregation of information3.3. Incentives and bonuses; 3.4. Game-theoretic techniques to making plans; four. Organisational constitution of a deliberate economic system; 4.1. replacement organisational types; 4.2. department and nearby buildings; 4.3. Organisational constitution and monetary switch; five. making plans and the Macroeconomy; 5.1. critical making plans and absence; 5.2. inner and exterior stability; 5.3. Innovation, funding and progress; Bibliography; Index.
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Additional resources for Central Planning
Time periods Five-year plans and annual plans are the two main types; there has been som e discussion o f very long-term (15-20 yrs) perspec tive plans. Scope All domestic econom ic activity; also international trade. Objectives and plan formulation Econom ic growth, emphasis on heavy industry; plans for mulated using a variety o f material and financial balances. Instruments, plan implementation Instructions to individual enterprises, backed up by allocation certificates, control through the banking system, and various permits and licences.
G. ) with no clearly established ranking among the top levels of each hierarchy. Then the top levels inform each other about their proposed policies, but no-one has the power to impose a coordinated outcome, hence the term uncoordinated parallel hierarchy. With a single top-level organisation we either have coordinated parallel hierarchy, or simply a coordinated hierarchy. In the former case, the different hierarchies could be established on functional lines, as above, or they could be based on regional and/or branch-based subdivisions of the economy.
Early discussions of decentralisation were related to the competitive model of a market economy in which, at equilibrium, price signals are sufficient to induce agents to produce a collection of goods and services with supplies and demands in balance. This coordination of economic activity occurs without the need for any central agent to bring it about (except, perhaps, the mythical Walrasian ‘auctioneer’), and as we saw in Chapter 1, Lange’s approach simply sought to replicate this allocation in a planned economy by suitable organisation of the information flows between the centre and the lower-level agents.
Central Planning by P. Hare