I warned Kazakhstan not to create price controls…..
I warned Russian President Putin not to create price controls….
But Zimbabwe has under Mr. Mugabe…..
Maybe I should change the name of the blog to PCCapitalistAgainstPC (second one being price controls).
This has created such large shortages that now there aren’t enough products on the shelves to predict the inflation rate.
This from the BBC:
“Many staple goods are often absent from shop shelves after the government ordered prices to be halved or frozen in a bid to stem galloping inflation. September’s inflation rate was put at almost 8,000%, the world’s highest.
Other reports suggest the rate could be at near 15,000% and the International Monetary Fund had warned it could reach 100,000% by the end of the year.”
This has created a black market for those goods…
The BBC continues:
“Mr Nyoni said the Central Statistical Office has delayed the release of the inflation figure until an accurate way of calculating it can be found.
“We went to too many shops to observe and so compilations have not been completed,” he said.”
But one sentence sums up the problem:
“Manufacturers have said they cannot afford to sell goods at below the cost of producing them.”
Another example of why price controls are bad. Especially when inflation is just how much money is in the economy….
Guess who controls that?
Goodnight folks, and thanks for playing how dictators run horrible monetary policy and try to fix their mistakes by starving people. I mean (with great sarcasm) protecting the citizens from high prices.