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by lumost
1808 days ago
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A central planning economy requires calculating desired outputs and required inputs through multiple layers of a supply chain. The resultant outputs through each layer of the economy, exports, and imports have a direct value that was in fact measured in the soviet currency of Ruble's - these Ruble's could be exchanged for dollars and provide a useful GDP figure in any desired currency. The basket of goods a given amount of these Ruble's could buy internally vs. their dollar equivalent elsewhere also provides a reasonable measure of Purchasing Power Parity. One can also bypass the production component and measure GDP in terms of the incomes in Ruble's paid to Soviet workers in combination with the export/import figures to arrive at a reasonable estimate. |
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The basket of goods didn't have any fixed ruble price, as much of it was free.
Much of production was never given a full price in rubles, as a large part of it was by direct resource allocation.
You can indeed estimate it using a basket of goods and their equivalent values, but not with income and import/export + exchange rates because you're then removing all natural wealth.
It's a very difficult problem. You can make an estimation, but it's still an estimation, that is, for hard GDP. For PPP I agree the numbers are accurate, but that's not what was being discussed.