ABSTRACT
‘The method’ aims at estimating market prices, after an open market economy is installed and becomes operational, and predicting the response of enterprises and consumers to market forces. Basically the method is an estimation procedure for macro economic forecasting during the transition period when conventional forecasting techniques breakdown due to continuous change in parameters. The method, as a side product, also provides a comprehensive framework and policy package for a successful transformation process, as a tool of indicative economic planning. In view of the fact that the present governments of the socialist countries are averse to any kind of central planning, convincing authorities in these countries of the usefulness of the method is a difficult proposition. The processing under the method by Central Plan Bureau produces as its main products, exchange rate, minimum and average wage rates, profitability of economic activities carried out by firms; and as side products, macroeconomic magnitudes such as national income, exports, imports, tax revenue.
