Was it feasible to manage money without money market: the problem that caused the failure of the Soviet planned economy

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530392
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic history
• Research Institution: Yokohama National University
• Principal Investigator: NAKAMURA Yasushi 横浜国立大学, 国際社会科学研究院, 教授 (60189066)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: ソ連 / 計画経済 / 通貨管理 / 資金循環 / 国民経済計算 / 生産性 / 経済発展 / 生産関数

Outline of Final Research Achievements

The Soviet planned economy was designed according to the idea of elimination of money and capital. However, money continued to be used until the end of the regime. There was no alternative way to organize modern economic system without money. Consequently, the Soviet regime faced the problem to manage fiat money without money market. This study confirmed there was no theoretical and practical solution of the problem and, thus, utilization efficiency of funds continuously deteriorated, that is, value of money continuously decreased. We can conclude that a planned economy that expels market for money and capital is unsustainable.

Free Research Field

経済学