The Myth Of Price Controls

The Myth Of Price Controls Authored by Daniel Lacalle, The Cuban dictator Miguel Díaz-Canel’s recent admission that Cuba’s generalized price caps failed to contain inflation, generated shortages, encouraged illegal markets, and reduced tax revenues is another confirmation of a much older economic lesson: price controls do not solve inflationary pressures, and they intensify the distortions they are meant to prevent. The Cuban case is especially revealing because the criticism co...

By Tyler Durden