BOOK REVIEW 71 Pagano has an interesting discussion of why he believes there is ne smooth transition from 'single-firm socialism' to what he calls 'anti-firm communism'. Pagano provides an extensive review of the literature on the them^r of the mechanisms for the coordination of economic activity, especially in relation to socialist economies. He points put certain major fallacies which are encountered in discussions of this literature. The Walrasian system of the 'auctioneer-economy' is shown to theoretically approximate a planned economy, while the Lange system of planning is shown to possess essential features of market coordination. The informational and organisational costs of the Walrasian and Lange systems are analysed in the context of recent planning models and the case for decentralisation of economic activity is also examined. Most books on political economy focus either on the theory of value or crisis theory. Pagano's book is a refreshing change; it examines equally important, but much ignored areas of economic and social activity. R.RAMANA Research Scholar, Cambridge University