ELLIS, HOWARD S., with the assistance of the research staff of the Council on For eign Relations and with an introduction by Dwight D. Eisenhower. The Eco nomics of Freedom: The Progress and Future of Aid to Europe. Pp. xviii, 549. New York: Harper & Brothers for the Council on Foreign Relations, 1950. $5.00

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/67362/2/10.1177_000271625127500129.pd

ERICH SCHNEIDER'S “INTRODUCTION TO ECONOMICS”

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/75347/1/j.1467-6435.1954.tb02335.x.pd

THE NATIONAL PRODUCT OF EAST GERMANY

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/73179/1/j.1467-6435.1959.tb02142.x.pd

AMERICAN FOREIGN ECONOMIC POLICY, THE DOLLAR SHORTAGE, AND MR. BALOGH 1

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/73446/1/j.1467-6435.1949.tb00473.x.pd

DILLARD, DUDLEY. The Economics of John Maynard Keynes: The Theory of a Monetary Economy. Pp. xv, 364. New York: Prentice-Hall, 1948. $5.00

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/66714/2/10.1177_000271624926600131.pd

Budget, Economic Policy, and Economic Performance in Underdeveloped Countries

This paper tries to combine political and economic matters. It examines first the political and historical limitations which any government faces; it then examines the function of the State in a market-type economy; it questions the need as well as the possibility of setting too clearly defined targets. This leads to an examination of different types of investments, and to an examination of the major function of governmental policies in achieving growth. Investment projects and a reasonably efficient and logically organized budget are seen to be the central means of getting things done.Center for Research on Economic Development, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/101004/1/ECON444.pd

Discussion and Reviews : International integration and the welfare state: a review of Gunnar Myrdal, An international economy: problems and prospects

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/67128/2/10.1177_002200275700100108.pd

Comments on Gustav Ranis' "Relative Prices in Planning for Economic Development"

The authors refute the basic premise of the Ranis paper which states that the development of a newly independent economy should occur in two phases--a growth-promoting phase and an efficiency-promoting phase.Center for Research on Economic Development, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/100704/1/ECON174.pd

Population movements and labor force in the SBZ

Cover title"February 1956.""L2-445"--handwritten on coverAt head of title: Communist Bloc Program. East Germany Project"First draft."Includes bibliographical reference

PLANUNGSPROBLEME DER WIRTSCHAFTLICHEN ENTWICKLUNG *

The main problem of underdeveloped countries consists in an inflexible productive structure which makes it difficult to adopt to changes in world markets. There are three important instruments to improve their flexibility. The first instrument are the investments - not investments in general (this is only of interest in the context of stabilization policies) but specific investment projects or programs. The author distinguishes directly and indirectly productive investments, which require separate investment criteria. For the latter especially the fact ought to be taken account of that they cause large future current expenditures, therefore absorbe future resources ahead of creating them. The second instrument is the budget . In underdeveloped countries its task is not only to finance the public services but also to accumulate savings. It becomes the link between the public and the private sectors as well as between directly and indirectly productive investments, and, by this, the main instrument for development. The third instrument is the balance of payment policy: avoidance of balance of payment crises and efficient use of export receipt. Its further tasks consist in creating public savings—a task that is very often underestimated compared to the infant industry argument or the directing of import and export. In the last part the author scrutinizes a special problem of planning a specific investment project: shadow or accounting prices (wages, interest rates, exchange rate). The theory implies that all investments are directly productive, which ist too simple. When shadow prices are adopted, the budgetary consequences are neglected. E.g. a project is chosen on grounds of low shadow wages, nevertheless market wages have to be paid. The difference is a charge on the budget. The possibilities of productive investment are reduced, the composition of directly and indirectly productive investments altered in favour of the latter, and economic growth diminished. The author therefore concludes that the adoption of shadow prices calculated from a static system might prove disastrous to future growth. The solution would consist in realizingall investment projects the rate of return of which would exceed the interest rate of, say, the World Bank (more or less opportunity cost of capital), and limiting investment in indirectly productive activities to what the budget can stand, in particular to an amount that does not foreclose future savings.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/72628/1/j.1467-6435.1967.tb00881.x.pd