I don't quite understand your question, isn't the definition of a centrally-planned economy one in which the government plans the economy? I imagine that in most centrally planned economic schemes the government would either determine the prices or set a cap for essential goods.
It has been adjusting well. There are many trade agreements going into affect and the Russian people seem to be embracing it.
This is because centrally planned economy can never reach the same level of efficiency that free market economies create. Although centrally planned economy does work in the short run (So Viet Union); in the long run, it creates huge inefficiency and thus harm not only the economy but also the people in the country. Hence, by moving towards free market they are able to gain more economic growth and possibly economic development.
A command economy can be referred to as a:planned economy,centrally planned economy,command and control economyA command economy was used in communist countries. Examples are the former Soviet Union, North Korea, the People's Republic of China, and Cuba.
Equality is a major goal of a centrally planned government. Also growth is, but they only want the economy as a whole to grown not an individual. Also they want people to feel secure, but only secure enough so that they do not rebel against the government.
Central Planning: A centrally planned economy relies on a party in power to decide what resources should be allocated to various demands as they see fit.Free Market: A free market economy relies on prices to determine where demand should be filled and to what extent.Because of these differences, an economy that is centrally planned is usually inefficient in their allocation of resources to each market. They decide beforehand which areas will get resources, restricting the supply and setting a price with no knowledge about the consumer's choice.A free market is much more adaptable, using price as a communicator, supply, demand and price interact to form equilibriums that satisfy market clearing outcomes. This system is much more efficient in that the people who value the goods most are able to get them. This is the idea, it doesn't always work perfectly.
It has been adjusting well. There are many trade agreements going into affect and the Russian people seem to be embracing it.
This is because centrally planned economy can never reach the same level of efficiency that free market economies create. Although centrally planned economy does work in the short run (So Viet Union); in the long run, it creates huge inefficiency and thus harm not only the economy but also the people in the country. Hence, by moving towards free market they are able to gain more economic growth and possibly economic development.
Planned economy can be beneficial in terms of: Prices are under control and so people can afford to consume goods and services, less inequality of wealth, elimination of waste causing competition and firms and there is no duplication because the allocation of means is centrally planned.
A command economy can be referred to as a:planned economy,centrally planned economy,command and control economyA command economy was used in communist countries. Examples are the former Soviet Union, North Korea, the People's Republic of China, and Cuba.
Equality is a major goal of a centrally planned government. Also growth is, but they only want the economy as a whole to grown not an individual. Also they want people to feel secure, but only secure enough so that they do not rebel against the government.
Central Planning: A centrally planned economy relies on a party in power to decide what resources should be allocated to various demands as they see fit.Free Market: A free market economy relies on prices to determine where demand should be filled and to what extent.Because of these differences, an economy that is centrally planned is usually inefficient in their allocation of resources to each market. They decide beforehand which areas will get resources, restricting the supply and setting a price with no knowledge about the consumer's choice.A free market is much more adaptable, using price as a communicator, supply, demand and price interact to form equilibriums that satisfy market clearing outcomes. This system is much more efficient in that the people who value the goods most are able to get them. This is the idea, it doesn't always work perfectly.
Central Planning: A centrally planned economy relies on a party in power to decide what resources should be allocated to various demands as they see fit.Free Market: A free market economy relies on prices to determine where demand should be filled and to what extent.Because of these differences, an economy that is centrally planned is usually inefficient in their allocation of resources to each market. They decide beforehand which areas will get resources, restricting the supply and setting a price with no knowledge about the consumer's choice.A free market is much more adaptable, using price as a communicator, supply, demand and price interact to form equilibriums that satisfy market clearing outcomes. This system is much more efficient in that the people who value the goods most are able to get them. This is the idea, it doesn't always work perfectly.
As this is a question looking for an opinion, you may have dissenting answers.Answer 1 - NoThe main problem with a centrally planned economy, and from which nearly all problems with the system derive, is the inability for forecasters to properly predict what future consumption will be. This inevitably leads to shortages, when a good is more desirable than previously estimated, and overages, when a good is less desirable than previously estimated. These shortages and overages lead to price instability, which harms businesses and consumers who can no longer adequately budget for their needs in a climate of price jumps and falls. Correspondingly, people buy less than they may want in order to only get what they absolutely need and save for a rainy day. This leads to a contracted economy overall. A free-market economy is able to circumvent the problem of shortages and overages more effectively since businesses are able to increase or decrease production with realtime market information.It should not surprise anyone that every centrally planned economy has resulted in poor growth and dissatisfaction of the population.
the people
The fundamental disadvantage of a centrally planned economy is that local conditions, which often vary from one place to another (and can change rapidly), cannot be accounted for at the highest levels of planning. Another serious disadvantage is the cost incurred by such an economy's numerous executive agencies and administrators.
Who benefits:The Central Planners -- all of those bureaucrats are employed with the purpose of creating the central planning and, as a result, their very livelihood exists only by dint of the planned economy.Black Market Smugglers -- Black Market Smugglers get much more traffic for needed goods if the economy cannot anticipate people's needs and this happens very commonly in planned economies.Who suffers: Everyone ElseEntrepreneurs are banned from starting new businesses that sell their own products.Businesses have product overflows in some categories and shortfalls in many others.Common people cannot buy everything that they may need or want.
Collectives in the Soviet Union avoided competition that drives a free marked economy in multiple ways. Production was centrally planned, and compensation was not related to production. Firms and individuals were given quotas which were to be met and were allocated endowments to meet those quotas. People could not set the price of goods because there was no price, and there was no competition between firms because quotas were handed down by the state, not by demand.