Discusses the Hungarian economic system called the New Mechanism which was established post‐1960. Suggests that the planners are still thinking in terms of quantities and balances and not paying enough attention to prices and costs.

One of the most amazing 'events' of the last 15 plus years has been the complete transformation of the countries of Central and Eastern Europe and the former Soviet Union, their transition from communist rule and central planning to various forms of market-type economy. Ten of the countries have...