1996 Reports

The Stuctural Barrier to Transition: A Note on Input-Output Tables of Centrally Planned Economies

Ericson, Richard E.

This note begins an exploration of one of the key legacies of the Soviet economic system, the physical structure of production and economic interaction, and its impact on the transition to a market-based system. It addresses some reasons for the size of the "shock" to the economy subsequent to the liberalization of prices, including the apparent disappearance of vast amounts of industrial output and an inflation driven by more than just monetary factors.