an economy that is controlled by the central government, which sets goals, priorities, production schedules, prices, etc. Planned economies are characteristic of socialist societies. Mistrusting the capitalist system of laissez faire, which results in social injustices, they attempt to promote the public good by manipulation of economic forces. As the economies of the Soviet Union and Eastern Europe under communism reveal, however, planned economies are rarely as prosperous or as efficient as those which embrace free enterprise. Sometimes called a command economy.