The main theme of this study is to analyze the Soviet economic theoretical debate in the period 1985 – 1991. This period of reconstruction gave possibilities of a more free debate. In the period up to 1989/90 the directive from the Central Committee of the Communist Party was to defend the socialist economic system and its supremacy over market economics. However, certain market economic ideas were deemed as functioning methods also in a planned economic system. One of the conclusions in this thesis is that the Soviet economists failed to solve some central theoretical problems in the Soviet economy and as consequence their thinking failed to have a stabilizing effect on the socialist economic theory. The Achilles heel was how to apply the labour theory of value on a planned economy. In 1990 and 1991 the discussion was very free and now a transition to market economy was accepted by the economists. The main issue between the Soviet economists became now whether a gradual transition to market economy was to be preferred to shock therapy. The majority of the economists recommended a gradual transition. Scholars have emphasized that old stationary structures are important in Russian and Soviet history. A conclusion in this thesis is that such structures seemed to have played a role in Soviet and Russian theoretical thinking in the period 1985 – 1991.