Limited managerial power in decision making was promoted as a way to create a “socialist market.” However, it jeopardized the foundation of the economic system in the Soviet Union both politically and economically. The growing level of wages led to the growing deficit of the state budget, that was mostly financed by monetary emissions (Nove 1992). The increased amount of monies in the economy and the deficit of goods, that can be bought with these moneys, led to repressed inflation and shortages (Shleifer and Vishny 1992). Unpopular decisions to raise the wholesale prices of basic commodities were rejected by the government, and much needed price increases were implemented only during the last months of the Soviet Union, when the collapse of the system became inevitable.