Price Caps: A Recipe for Inflationary Disaster The recent wave of price cap proposals sweeping across Europe is a stark reminder that policymakers are still struggling to grasp the fundamental principles of economics.
As the global economy grapples with inflation and stagnation, politicians are once again reaching for government controls on prices.
This isn't a new phenomenon; the ill fated experiment with price caps in Venezuela back in 2013 serves as a cautionary tale.