Planned economy

A planned economy is an economic system in which government decisions are made by central state economic managers who determine what sorts of goods and services to produce and how they are to be priced and allocated, and may include state ownership of the means of production. Since most known planned economies rely on plans implemented by the way of command, they have become widely known as command economies. Any economic system that is centrally-planned by a government is commonly referred to as economic statism. To stress the centralized character of planned economies and to contrast the term with decentralized planning in a market economy, a more specific term, centrally planned economy, is also used. Although a planned economy may include exchanges of money, these exchanges are less important in allocating resources than the central plan.

Related Topics:
Economic system - Government - Statism - Market economy - Money

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A palace economy may be considered as a subsistence economy augmented with elements of command economy.

Related Topics:
Palace economy - Subsistence economy

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Proponents and adversaries of planned economy put forth a number of arguments. It is not the goal of this article to discuss either the validity or the applicability of these arguments.

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