By Jan Adam
The writer discusses the conventional process of administration of the economic climate because it existed within the early Fifties within the USSR and is going directly to care for the reforms of the Nineteen Sixties and of the Nineteen Eighties, state through state. He indicates that the point of interest of the reforms is on discovering a formal mix of making plans and the marketplace mechanism, and their good fortune could be judged by means of their skill to resolve acute monetary problems.
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Additional info for Economic Reforms in the Soviet Union and Eastern Europe since the 1960s
In addition, over-investment with its consequences produces inflationary pressures. Needless to stress, all four count ries were interested in coping with the shortcomings mentioned. The Soviets tried to involve enterprises in financing investment without really losing any control over investment decisions. The other three countries opted in one or another form for the pre-1964 Yugoslav system which used regulation of investment activities as an important tool for making enterprises follow the objectives of the state plan.
29). Such a rate cannot guarantee all segments of the population a rise in the standard of living (if increases in employment are disregarded). During the 1960s the Polish leaders did not attempt to carry out any major systemic changes in the management system. The changes made during this period were confined on the whole to attempts to improve the incentive system without really transforming the administrative system. The reform prepared for 1971 with great fanfare also focused primarilyon the incentive system.
Exchange rate plays a passive role entirely. The State Bank, which fulfils the twin roles of a central bank and a credit rationing institution, exerts an important supervisory function. It monitors the fulfilment of the plan and checks on the withdrawal of funds for wage purposes. To this end, enterprises are obliged to conduct all their financial operations through the bank branch in their location. In addition, enterprises are not allowed to extend loans to each other. In fighting inflation the central planners do not rely on price rigidity alone.