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Karl Scholz's translation of the study Mengenplanung und
Preisplanung in der Sovijunion by Hans Hirsch reproduces the
provocative thesis of the author in concise, lucid English. The
need for such a book is made dear in Hans Hirsch's introduction:
"The question of economic accounting under socialism has attracted
much interest for a long time. This is primarily due to its key
position in the controversy over the economic order. However, if
understood correctly, it is just as important to pure economic
theory. Here lies the best opportunity first to examine price
theory statements and to perceive how far price theory has either
general validity or is merely applicable to particular historical
phenomena and, secondly, to separate out the items that are not
determined by the logic of the theoretical system but by the
incidental peculiarities of the empirical economy to which the
theory is related. Hans Hirsch's treatise deals with the Soviet
experience and difficulties. The treatise also shows the methods of
economic guidance employed in Russia by considering the following
significant theoretical economic series of topics: the principles
determine quantities of product and the direction of their use; the
distribution of authority and influence between higher and lower
guiding agencies; the role of prices in the guiding process; and
finally the operating forces and viewpoints, in setting prices. In
the presentation the conflict between the system of material
planning, which forms the basis, and the effects of the financial
means of guidance, especially of prices, becomes clearly visible.
This gives occasion to attempt a theoretical interpretation of the
material guidance system, as such, and in its relationship to a
financial guidance system. In so doing the author expresses views
as to the basic compatibility of material and financial guidance
methods, contrary to hitherto prevailing doctrine. The knowledge
thus acquired will serve as renewed stimulus to further development
of the theory of economic planning.
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