Economic Planning and Industrial Policy: A Framework for Avoiding the Corner Solutions

Abstract

The extreme of central economic planning or the other extreme of reliance only on market signals are not appropriate approaches to national economic planning as complete reliance on either extreme are fraught with serious limitations. Economic planning must find a workable middle way to encourage and support conditions that enhance economic growth. This note suggests some pragmatic guidelines and principles for a balanced framework for national economic planning.

Keywords: Economic Planning, Regulation, Industry Guidance