This paper deals with different techniques oi price control and rationing.
Freezing, formula price and dallar and cent specific price regulations are reviewed.
The conclusion on these techniques are that freezing is a good device for short time emergency control, which cannot be inforced for long; formula price renders satisfactory results when applied to certain goods or sellers, but is too complicated and in certain cases it may even be inflationary. Dollar and cent specific pricing is in general the best procedure but it requires a fairly complete knowedge of market conditions and commercial practices.
As a matter of fact, price fixing techniques cannot support by themselves the burden of holding the price level stabilized. They should be complemented with rationing and monetary and fiscal policies.
Techniques of specific and over-all ratiqning are analized and again the conclusion comes out that there is not a single device that could be satisfactory for every situation. Dollar-point regulations seems to be most effective except for those cases where the product to be rationed is a fairly homogeneous one as, for instance, sugar or milk, where physical rationing is the best pracedure.
Finally, subsidies are brought into the picture. The paper ends with a sketchy program of price control measurements and policies. |
ChileanJAR
