Indicative planning

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Indicative planning is a form of economic planning implemented by a state in an effort to solve the problem of imperfect information in economies and thus increase economic performance. When utilizing indicative planning, the state employs "influence, subsidies, grants, and taxes [to affect the economy], but does not compel."[1] This method of planning originated in France after the Second World War and was carried out by the Commission General du Plan.

[edit] Notes

  1. ^ Alec Nove (1987), "Planned Economy," The New Palgrave: A Dictionary of Economics, v. 3, p. 879.