This is Democracy – Episode 202: Inflation
This is Democracy
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Price Controls
Price controls are potent in the sense that they immediately act on inflation, but also seriously distorting. Once you've fixed a price, then those who benefit from that obviously have a huge investment in trying to maintain that price,. And you will getdistorting counteractions by people who were forced to sell whatever commodities in short supply at that price. It was the Reagan administration which finally decontrolled petrol in the U.S. In 1973 and 1979, it's famous in the United States in 1973 and 1979.
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