Soviet Price Policies

Recent Soviet policies regarding industrial producer prices, agricultural purchase prices, and retail prices are analyzed. Effects on the level and structure of each price category, and on the relationships among the three categories, are evaluated. Some constructive steps in the reform of the price system have been taken, and others adopted although not yet implemented, but important deficiencies remain. Hence, further changes are proposed to make prices of all three types reflect cost and scarcity more accurately, in order to exert greater influence on resource allocation and income distribution. Journal of Economic Literature, Classification Numbers: 027, 052, 124, 227.