Working Paper: NBER ID: w0782
Authors: Richard Portes
Abstract: We discuss the monetary institutions and macroeconomics of centrally planned economies (CPEs) ; objectives and techniques of monetary control; the relevance to CPEs of the neutrality property, the natural rate hypothesis, and the quantity theory; the roles of stock .and flow variables and the stability of asset demand and expenditure functions; the relation between monetary policy, fiscal policy and incomes policy in CPEs; the CPE equivalent of a floating exchange rate and its implications for monetary policy; and "super crowding out." Many considerations suggest that monetarism as theory and policy might be more applicable under central planning than it is in market economies.
Keywords: Centrally Planned Economies; Monetarism; Macroeconomic Control
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| money supply (E51) | inflationary pressures (E31) |
| monetary authority control over money supply (E50) | inflation rates (E31) |
| inflation rates (E31) | consumer behavior (D19) |
| inflation rates (E31) | overall economic stability (E66) |
| wages (J31) | supply of money to household sector (E51) |
| fiscal policy in CPEs (O23) | monetary policy in CPEs (E52) |