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News Link • Economy - International

No Inflation Friday: Dollarized Panama issues price controls for basic goods

• http://www.sovereignman.com, by Simon Black

This is largely a self-inflicted wound that was bound to happen.

Fresh on the heels of his victory in May, the then President-elect announced that one of his first orders would be to regulate prices for staple food products.

He followed through on his promise, establishing price controls on certain brands of roughly two dozen items like chicken, rice, eggs, and bread.

And within a matter of weeks, many grocery store shelves are already empty, at least for the regulated items.

It's not quite Venezuela or Cuba where it can be downright impossible to buy a roll of toilet paper. But it's more proof that price controls almost always backfire.

This is largely a self-inflicted wound that was bound to happen.

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