TERRA ECONOMICUS, , Vol. 14 (no. 2),

The research article provides a new critical insight on the arguments for one of the most influential brain attacks of our time against the market economy – by trying to legitimate an idea of usefulness of “macroeconomic planning” for the market economy. Being in fact a “Trojan horse” in the market environment, such kind of ideas has a long prehistory (including the Keynesian theory of macroeconomic equilibrium and Hitler’s practice of regulation to overcome the post-war crisis in Germany). However, the attack which is the point of criticism in this article, illustrates the “best traditions” of “economic imperialism”. The solutions proposed in the paper are of high relevance, since they refer to the new evidence the authors of the criticized article provide to justify the idea of macroeconomic planning. The purpose of the paper is to demonstrate methodological and practical incompatibility of the concepts of centralized planning and free market, irrespective of particular change that take place in these two systems. The objectives of the article are: to provide rationale for using monographic method of critical analysis when appropriate; to provide characteristics for the political and economic evidence this paper appeals to; to study conceptual context of interrelationships between society and economy; to demonstrate the role of the bureaucracy in an attempt to resurrect macroeconomic planning in the market economy. Methodology used in the article: correct juxtaposition between the political and economic imperatives of macroeconomic planning and those of the market system. Limitations of the study: the analysis presented in the paper is bounded by the theoretical modelling of the initial premises, mechanisms of its implementation, and forecasts of its probable consequences in market and non-market economy. The texts of the authors of the criticized “planned market economy” concept, as well as the results of theoretical and methodological studies by foreign and Russian political economists served as the sources of data.

Keywords: centralized planning; indicative planning; planned economy; market economy; “planned market economy”

Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606