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

This topic contains 1 reply, has 2 voices, and was last updated by  Jeff Herbener 6 months, 2 weeks ago.

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  • #13602

    John Winters
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    Profesor,

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

    #13608

    Jeff Herbener
    Participant

    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.

    More on price controls:

    https://wiki.mises.org/wiki/Price_controls

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