Jump to ContentJump to Main Navigation
The Socialist SystemThe Political Economy of Communism$
Users without a subscription are not able to see the full content.

Janos Kornai

Print publication date: 1992

Print ISBN-13: 9780198287766

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198287763.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 18 January 2021

Shortage and Inflation: The Causes

Shortage and Inflation: The Causes

(p.262) 12 Shortage and Inflation: The Causes
The Socialist System

János Kornai (Contributor Webpage)

Oxford University Press

An examination is made of the multiple causes of the two related phenomena of shortage and inflation in the classical socialist system, addressing these causes at both the micro and the macrolevel. The first two sections of the chapter contrast the behaviour of the firm in short‐ and long‐term decision making under the capitalist system, with that under the socialist system. The next seven sections discuss the behaviour of the bureaucracy managing production; the role of relative prices; repressed inflation in interfirm relations and in the consumer sphere; excess demand on the macrolevel; the propensity to inflation, and the relationship between shortage and inflation; and the self‐inducement and reproduction of shortage. The last two sections give an overview of the socialist system–specific nature of the causes of shortage and inflation, and point out the economic inefficiency and lack of innovatory technical progress in the system.

Keywords:   bureaucratic control, causation, classical socialism, decision making, economic inefficiency, inflation, innovation, prices, shortage, socialist systems

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .