concentrated economy in which a country controls the means of production and marketing and is involved in planning economic activity (as opposed to a free economy system)
This article refers to an economy controlled by the state. For the proposed economic system that employes "participatory planning," see
participatory economics. A planned economy is an
economic system in which the
state or
government to one degree or another manages the
economy. Its most extensive form is referred to as a command economy, centrally planned economy, or command and control economy) In such economies that the
state or
government controls manufacturing and formulates all decisions about their use and about the distribution of income, The planners decide what should be produced and direct enterprises to produce those goods. Planned economies are in contrast to unplanned economies, i.e. a
market economy, where production, distribution, and pricing decisions are made by the private owners of the factors of production based upon their own and their customers' interests rather than upon furthering some overarching
macroeconomic plan. Less extensive forms of planned economies include those that use
indicative planning in which the state employs "influence, subsidies, grants, and taxes, but does not compel."
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- ;also called Controlled Allocation System; Command System; see also Free Market System; Capitalist System.
the supply of both consumer and industrial products is decided and planned over 5-10 years by a centralised authority; associated with Russia and Communism (see free-market economy).
Planned economy
(Econ) Nền kinh tế kế hoạch hoá.+ Một nền kinh tế trong đó các quá trình kinh tế chủ yếu được quyết định ở một mức độ lớn không phải do các tác nhân thị trường, mà do một cơ quan kế hoạch hoá kinh tế, cơ quan này thực hiện các mục tiêu kinh tế chủ yếu của xã hội.
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