Interactions Between Planned and Market Economies—Hungary

Abstract

This chapter examines the problems of a centrally planned economy in its economic relations with capitalist economies, using the example of Hungary over the years 1973–5. The chapter commences with a discussion of the relations between the world market and the domestic economy in general, then examines the effects of the reform in Hungary on its foreign trade and the effects of capitalist inflation on the Hungarian economy. The effects of world market changes on the actual management of the Hungarian economy are then discussed, and some conclusions suggested.