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Richard Stallman's Political Notes

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Price controls in Venezuela

mardi 12 novembre 2013 à 13:00

President Maduro has sent state agents to enforce low prices in some stores in Venezuela.

In general, price controls cause shortages and are not a good idea. However, if applied only to certain stores which were given permission to buy dollaws at the low "official" exchange rate, they can be seen as a condition of getting that permission, and they should not cause shortages.

Venezuela has had shortages of certain products. No one I met there could tell me why, but it did not seem to be due to price controls.