Home Page Forums Discuss Austrian Economics, Step by Step Economic Calculation and Price Controls

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    John Winters


    How does the thinking in the economic calculation problem interact with price controls?

    Jeff Herbener

    Economic calculation is using market-clearing prices to make economizing decisions about consumption, production, and exchange. Price controls, to the extent that they are enforced, supplant market-clearing prices and therefore, impair economizing. The further price controls extend across the economy, the closer it gets https://libertyclassroom.com/member-login/to eliminating economic calculation altogether.

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