ABSTRACT
But the use of such prices in a ‘socialist’ market leads to plainly undesirable consequences. The price relativities may more or less reflect the demand-supply relationships of the capitalist world market. They in no way reflect the demand-supply relationships among socialist countries, or the relative scarcity of particular goods. Furthermore, there is virtually no connection between these prices and the domestic prices and costs of any of the countries concerned. Nor, finally, has there been any serious attempt to align their domestic price structures to each other’s, or to the exchange rates in use.
