Indicative planning is a form of economic planning implemented by a state in an effort to solve the problem of imperfect information in market and mixed economies in order to increase economic performance. When utilizing indicative planning, the state employs "influence, subsidies, grants, and taxes, but does not compel." Indicative planning is contrasted with directive or mandatory planning, where a state (or other economic unit) sets quotas and mandatory output requirements.
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Famous quotes containing the words indicative and/or planning:
“Could anything be more indicative of a slight but general insanity than the aspect of the crowd on the streets of Chicago?”
—Charles Horton Cooley (1864–1929)
“For the people in government, rather than the people who pester it, Washington is an early-rising, hard-working city. It is a popular delusion that the government wastes vast amounts of money through inefficiency and sloth. Enormous effort and elaborate planning are required to waste this much money.”
—P.J. (Patrick Jake)