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Specifics of Operational funding of enterprises under centrally planned economy ? theory and praxis in Czechoslovakia before 1989

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  • Ale? Rod

    (University of Economics)

  • Klára ?ermáková

    (University of Economics)

Abstract

This paper deals with the system of operational funding of enterprises in a centrally planned economy. The analysis focuses on the case of Czechoslovak Socialist Republic before 1989. A tool analyzed in the paper ? credits for constantly revolving working capital ? had played the main role in the planned Czechoslovak economic system. These credits for constantly revolving working capital can be described as specific frameworks for loans based on forecasts and plans of volume of production made by Czechoslovak state institutions. The system had created inefficiencies in the economy and its heritage seriously influenced processes in the period of transformation after 1989, as the paper concludes.

Suggested Citation

  • Ale? Rod & Klára ?ermáková, 2015. "Specifics of Operational funding of enterprises under centrally planned economy ? theory and praxis in Czechoslovakia before 1989," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 4(3), pages 39-51, September.
    • Handle: RePEc:sek:jijoes:v:4:y:2015:i:3:p:39-51
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    References listed on IDEAS

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    More about this item

    Keywords

    central planning; socialism; banking; corporate finance; operational funding; credits for constantly revolving stocks; inefficiencies;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian

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