Planned Economy

A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a public body such as a government agency.

Central planning aims to improve productivity and coordination by enabling planners to take advantage of better information achieved through the consolidation of economic resources when making decisions regarding investment and the allocation of economic inputs.

Planned economies are usually categorized as a particular variant of socialism, and have historically been supported by and implemented by Hard Syndicalist and Totalist states.