Planned Economy

Definition

A planned economy is an economic system in which the government controls and regulates all aspects of production, distribution, and consumption of goods and services. It involves centralized planning and decision-making by the state.

Related terms

Command Economy: An economic system in which production, investment, prices, and incomes are determined by a central authority (usually the government).

Five-Year Plans: A series of centralized economic plans implemented in Soviet Russia that set specific targets for industrial growth over five-year periods.

State-Owned Enterprises: Companies or organizations that are owned and operated by the government rather than private individuals or shareholders.