Bureau of Business and Economic Research Report

Lately interest in the Soviet Economy has grown. This interest is in part due to the processes proceeding in the country towards the use of markets. The actual disintegration of the USSR as a unitary superpower can't help affecting the world political and military situation. The growth of crisis has in part resulted in economics from the changing structure in the various Republics and this change doesn't promote world economy stability. At present, the world community jointly with the leadership of the Union and the Republics are trying to improve the deteriorating macroeconomic processes in the former USSR. Why did such a dramatic worsening of the economic situation take place in the USSR? Is it a consequence of mistakes in the choice of macroeconomic strategy? Or is there any rational explanation for these developments? These questions are principal for us in this paper. The answer to these questions will enable us to map out concrete measures for alleviating this situation and avoiding repetition of mistakes in the future . For an evaluation of the problem, macroeconomic analysis will be used to analyze the commodity markets, money markets, and labor-force markets. The temporal period, which will be analyzed, will cover the last five to six years. However, 1985 became the turning point for macroeconomic development of the Soviet Union because the "acceleration conception" (perestroika) was proclaimed just that year (kohyenyue yckoperue)