Mr. M. R. Wyczalkowski, economist in the Eastern European Division, European and North American Department, was educated at the Academy of Commerce, Warsaw, and the London School of Economics. He was formerly deputy Professor and deputy Rector of the Academy of Commerce, Warsaw, and director of the Research Department of the National Bank of Poland. He is the author of Money in the Capitalist System and in Planned Economy, Vol. I, and Economic Institutions of the United Nations, both in Polish.
“Kolkhoz markets” are markets where farmers sell mostly foodstuffs produced on their individual plots, or goods obtained as payment in kind for their work on cooperative farms. The government influences prices on these markets--sales in which are relatively unimportant—in only an indirect way.
See Oskar Lange, The Working Principles of the Soviet Economy (The Russian Economic Institute, New York, 1943).
This may be explained in part by the fact that they are a substitute for rents and a part of “normal” profit at various stages of production.
A. Yugow, Russia’s Economic Front for War and Peace (New York, 1942), p. 132.
The preference scales of these two categories of persons cannot conflict, because the portions of consumers’ preference scales which become “active” (i.e., can exert an influence on the economy) are only those to which the planners’ preference scales are indifferent, or which are identical with the latter. Active preference scales of planners comprise those spheres of choice which are represented by the “closed” portions of consumers’ scales or which do not appear on these scales. Cf. Jan Drewnowski, “Proba Teorii Gospodarki Planowej,” Ekonomista (Warsaw, 1938/39).
Prices on kolkhoz markets are greatly dependent on the prices charged by state and cooperative stores for identical commodities or for good substitutes.
A situation similar to this existed in the U.S.S.R. before the war.
Relative price spreads among capitalist countries may develop where previously they did not exist or existed only in a smaller degree. To measure changes in the relative price spreads between two countries over a period of time, a formula may be used similar to that explained above:
This does not imply that better terms of trade are actually assured under a state monopoly than under a more competitive form of organization.
Member countries are Albania, Bulgaria, Czechoslovakia, Hungary, Poland, Rumania, and the U.S.S.R.
Supplement to the New Times, No. 10, March 8, 1950, p. 7 (“Decision of the Council of Ministers of the U.S.S.R. to calculate the value of the ruble on a gold basis and to raise the ruble foreign exchange rate”).
Loc. cit.: “In the United States of America, too, the continued rise of prices of articles of general consumption, and the continued increase of inflation resulting therefrom, which has been repeatedly admitted by responsible spokesmen of the United States Government, have led to a substantial decline of the purchasing power of the dollar.”
That is, before its revaluation.
Supplement to the New Times, loc. cit.
That is, trade for which payment in some form is made.
The maintenance of exchange rates which are relevant for foreign trade purposes is probably partly responsible for some limitations upon the extent to which the taxation systems of countries which maintain such exchange rates can be allowed to diverge.