The proposals in our policy memorandum on economic stabilization — a restrictive monetary policy and a ﬁscal policy that eliminates the government deﬁcit — are shaped by our view that the Soviet Union today faces a mounting economic crisis. As we emphasized in our discussion in the policy memorandum, problems include issues of ineﬀicient economic structures, distorted prices, large macroeconomic imbalances, divided government, and lack of popular support for steps to stabilize and restructure the economy.
Nordhaus, William D., "Stabilizing the Soviet Economy" (1991). Cowles Foundation Discussion Papers. 1225.