Product Market and Capital Market in the Light of the Experience of the Hungarian New Economic Mechanism

Wlodzimierz Brus and Kazimierz Laski
Additional contact information
Wlodzimierz Brus: University of Oxford
Kazimierz Laski: University of Linz and Vienna Institute of Comparative Economic Studies

Chapter 2 in Market Forces in Planned Economies, 1990, pp 16-31 from Palgrave Macmillan

Abstract: Abstract Economists are seldom — many would say never — lucky enough to have their theoretical propositions tested empirically in a way sufficient to pronounce on the validity of the theories. The ceteris paribus clause is usually the main culprit: ‘other things’ are simply not equal … We cannot pretend therefore that the experience of the Hungarian New Economic Mechanism (NEM) provides us with the decisive proof of the virtual impossibility of expecting product markets to operate properly without simultaneously opening up these markets for factors of production, especially the capital market. Nevertheless, the fact that most analysts of the experience of the Hungarian NEM point to this flaw in the 1968 blueprint as the major reason for the new system falling short of expectations has to be taken as an important point of departure both for practical thinking on reform and for theoretical considerations (or reconsiderations, as in our case).

Keywords: Labour Market; Capital Market; Central Planning; Socialist Economy; State Enterprise (search for similar items in EconPapers)
Date: 1990
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-11559-4_2

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349115594

DOI: 10.1007/978-1-349-11559-4_2

Access Statistics for this chapter

More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().