Question

Do you consider that previous anti-inflationary policies attack the essential cause of inflation?

Answer 1

Controlling investment has become the replica of contemporary governments: To achieve this, they have implemented different strategies, among which are:

Direct control policy or general prohibition of price increases: In the short term it may have a certain effect, but if the causes of the underlying imbalances are not corrected, as soon as controls are lifted, inflation will rebound more strongly. In any case, the chief operating officer can only be a short-term measure, if it is prolonged too long, the black market and production imbalances will be caused.

The income policy consists of establishing limits to the growth of salaries, payments and benefits: If wages and salaries are easier to control, the same cannot be said about benefits, so this policy can lead to losses of the exclusive purchasing power of workers.

"The foreign exchange policy allows the free importation of certain products, so that they are sold in the national market at a price approximately equal to those produced in the interior, to increase internal competitiveness and reduce price increases."