Money in the Soviet Administrative Command Economy:
A Quantitative Analysis
Abstract
This paper quantitatively examined the relation between money and real economy in the Soviet economy. The institutional and historical analysis of the Soviet monetary management yielded the tasks of quantitative analysis. The quantitative analysis showed that the institutional division of cash and non-cash was effective, demand for cash was not predictable, and there was no significant relation between money and real production. This result suggested that the Soviet monetary management relying on some vague money supply target could not function well and only the control on wage which was supported by the division of cash and non-cash could weakly ceil money supply. A fundamental problem of the Soviet economy seemed that a mechanism to bridge between money and real economy was lacked, while money was used. It is, therefore, difficult to regard the Soviet economic system as an complete economic system equivalent to the market economy.
