What was the reason for the introduction of the new economic policy?

The introduction of a new economic policy was a necessity. After the era of “war communism”, the state’s economy was in complete decline. The introduction of the tax in kind instead of the surplus appropriation created the conditions for the active development of agriculture. Market conditions and the use of various forms of ownership caused an increase in production in general. Banks began to work, loans were issued, foreign investors, with apprehension, but began to invest in the USSR. Cooperation flourished. For 7 years, the level of state revenues has increased significantly. A monetary reform was carried out.