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Fall of the Ussr

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Causes and Origins of the Collapse of the Former Soviet Union
An Honors Research Thesis Presented in Partial Fulfillment of the Requirements for Graduation ―with Honors Research Distinction in Russian Economic Studies‖ in the Undergraduate Colleges of the Ohio State University

by Erik Lauritzen The Ohio State University June 2011

Project Advisors: Professor Jason Blevins, Department of Economics Professor Jennifer Suchland, Department of Russian

Table of Contents
Abstract.................................................................................................................................................... 3 Introduction ............................................................................................................................................ 3

1. Macroeconomic Planning in the Soviet Union ................................................................. 5
1.1 The Early Policies of Period One ................................................................................................... 5 1.1.1 War Communism .......................................................................................................................... 5 1.1.2 The New Economic Policy (NEP) ............................................................................................... 9 1.1.3 Democratic Centralism ............................................................................................................... 11 1.2 The Significance of Economic Planning on Living Standards ................................................. 13 1.3 Five-Year Centralized Plans and Effects on National Income ................................................. 20 1.3.1 Trade Imbalances ........................................................................................................................ 24 1.3.2 Golden Rule Capital Level of Stock…...

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