ABSTRACT
Wassily Leontief (pronounced LAY-yon-TEE-F) is best known for developing input-output analysis. This technique, which describes the interrelationships among the different sectors or industries of an economy, has a number of important applications and provides broad insights into how economies work. Input—output analysis has been used to understand how production bottlenecks might arise when economies expand, and how the inflationary process is distributed and diffused throughout the economy (Leontief 1946). The technique was also used by Eastern European economies and developing economies after World War II for constructing five-year economic plans.
