By V. Lutz
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Extra info for Central Planning for the Market Economy
Sample text
Certain other products were completely freed from price control. Still others were put under what came to be called the 'regime of controlled freedom' which meant that the authorities had to be given advance notice (usually 15 days) of any intended price increase and that they could intervene before this period was up to prevent an 'unjustified' or 'excessive' increase. Both types of price freedom were granted in the form of exemptions from the general price-stop order of 1945, so that it was open to the authorities at any time to annul the exemptions so far conceded, and to reimpose price-stops at the current level, stops from which new exemptions might be granted subsequently.
26 The Exogenous Instruments: 1 development so as to make it conform (even outside the 'traditional' public sphere) with the Plan, rather than with the pattern that would result from the spontaneous play of market forces. A mere description of the powerful apparatus of intervention at the authorities' disposal, however, is obviously not sufficient to tell us how important a role the exogenous planning instruments have actually played at various times. 3. The Monnet Plan The original Monnet Plan (1947-50), especially during its first two years, depended heavily on instruments of a distinctly material kind, as well as on the 'power of persuasion' exerted by the consultational procedures of the concerted economy.
21 A New Kind of Planning Plan referred in much the same terms as previous Plans to the necessity of orienting production towards the commodities for which the domestic demand was increasing rapidly and for which the export possibilities were also good, rather than towards those of which domestic consumption was stable or only increasing slightly, and for which the export outlets were also unremunerative. But the Plan took it for granted that output in 1965 of several important products would exceed demand, and for each of these surplus products the Plan contrasted the 'forecast' or probable output with the target or 'desirable' output.