Some Remarks on the Problem of Pricing in the Socialist Economy

forming the framework of the price policy of the socialist state. This principle has important consequences, because it establishes the necessary relations between the prices of consumption goods and the level of nominal wages, and between the prices of investment goods and the amount of investment funds accumulated mainly from the gross benefit of the socialist enterprises. The second principle of the price policy is the necessity to cover the costs of production with prices, this being a condition of the financial independence of producers and a condition of every economic calculation of the efficiency of production, investments etc. The framework of the state price policy, resulting from the two mentioned principles is, however, broad enough to allow to establish very different relations between the prices of different goods, especially between the prices of consumption commodities and of production goods.