Get Alternative Approaches to Economic Planning PDF

By Martin Cave

ISBN-10: 0333266900

ISBN-13: 9780333266908

ISBN-10: 1349165239

ISBN-13: 9781349165230

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Papers offered at a seminar held in Kuala Lumpur, Malaysia, June 28-July 1, 1989

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Consumers unable to spend their incomes may add to their money balances and reduce their labour input. The latter effect would have the consequence of reducing supply still further and hence aggravating the repressed inflation (this cumulative process is known as the 'supply multiplier', by analogy with the conventional Keynesian demand multipliersee Barro and Grossman, 1974, and Muellbauer and Portes, 1978). The implication of the preceding paragraph is that a test for the presence of repressed inflation should be made on the basis of a properly specified and complete macroeconomic model.

The most important and detailed plan is the annual plan, often broken down into quarters. This plan sets out targets for all aspects of enterprise behaviour in great detail, and it is legally binding. Failure to implement the plan puts the enterprise director at risk of criminal sanction, though in practice such measures are taken only in extreme cases. The remainder of this section outlines the process of compiling the annual plan, and the next section focuses upon plan implementation at the enterprise level.

The targets are often derived from the five-year plan, adjusted to take account of preliminary indications from the State Planning Commission about what is feasible. (2) On receipt of these targets the State Planning Commission derives a set of output targets broken down by major product groups; these targets are set in the 22 Alternative Approaches to Economic Planning light of the Commission's knowledge of, or estimates of, the output capacity of each industry, and the targets are passed on to the appropriate ministry.

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Alternative Approaches to Economic Planning by Martin Cave


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