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Read our latest Policy Brief 71

byФинанце Тхинк
Our latest  Policy Brief 71 answers the question: Do government #measures to limit food prices have an effect ⁉

Measures to limit food prices have a strong effect only in the first month of implementation, reducing inflation by up to -1%!
After the first month, the effect dissipates due to market adjustments, such as increases in the prices of alternative products.
Inflation returns to its previous dynamics immediately after the measures are lifted, but there is no overshooting.
Finance Think recommends using such measures only during periods of very high inflation. In other cases, structural and market-based measures are needed.

Full brief: http://shorturl.at/KApmC

This post was originally published on this site

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