The paper focuses on the proposals of post-war order in Czechoslovakia and its theoretical analysis. While there exists a wide range of studies, both Czech and foreign, dedicated to the history of Czechoslovakia in the post-war period, a majority of the studies deals with political development. Then the interpretations of the failure of President Beneš’ “distinct model of socialism” are purely political – weakness of President Beneš and democratic elites, the aggressive politics of Communist party, influence of Soviet diplomacy, etc. On the other hand, economic studies are only descriptive without theoretical analysis of proposed post-war order. Our paper offers different interpretation of the fall of Czechoslovak democratic regime (1945–1948). Using the framework of Austrian school, we are trying to show the institutional incompatibility of proposed post-war order. Special emphasis is put on the relation of freedom, democracy and socialist economic planning.