The connection between growth imperative of monetary production economies, the realization problem and Kornai's surplus economy

Bibliographic Data

ID21282020
AuthorsZsolt Gilányi (0000-0001-6853-834X, Budapest University of Technology and Economics, corresponding author)
Year2023
Volume73
IssueS1
Pages119-127
Publication date2023-11-03
Open AccessYes
TypeARTICLE
VenueActa Oeconomica (JOURNAL)
Journal identifiersISSN: 0001-6373 • E-ISSN: 1588-2659
PublisherAkademiai Kiado Zrt. (PUBLISHER • HU)
DOI10.1556/032.2023.00037
OpenAlexW4388288028
LanguageEN
References cited3

Kornai challenged not only the dominant economic views of the socialist system, but also those of market economies. The former brought him fame, and the latter remained, so to speak, his scientific testament. He studied the systemic properties of different economic systems through the analytical grid of the sign of aggregate excess supply, which defined three categories: shortage economies, equilibrium economies and surplus economies. In this paper, we show that business plans postulated with the aim of realizing strictly positive net retained profits in nominal terms exclude equilibrium economies; these business plans imply a surplus economy. This definition of the business plan makes it possible to combine seemingly disparate results from different parts of the economic literature. An economy in which business plans are the rule and no economic agent can run a permanent negative budget is a surplus economy, which manifests itself in the phenomena of both growth imperative and realization problem. In short, all these phenomena are the manifestations of the same essence: the working of the business plans

Economic shortage · Economic system · Economics · Economy · Government (linguistics) · Market economy · Microeconomics · Planned economy · Production (economics) · Realization (probability) · Socialist economics · Russia and Soviet political economy

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