Revisiting Forced Savings in the Soviet Economy

Abstract

The problems of forced savings in the Soviet economy have not been sufficiently studied because of data problems among other things, and the discussion has been interrupted during the transition period. Therefore, the factors influencing forced savings are argued separately. These factors include (1) shortage in the official market, (2) malfunctioning of the second market, and (3) insufficient adjustment of consumer behavior from the official to the second market. In this paper, these factors are reexamined as a market character in an integrated fashion. On the basis of this examination, the logic of forced savings is then discussed.