Venezuelan President Delcy Rodríguez announced that she will submit a bill on the agreed price system to Congress.
During a day of comprehensive care in Petare, Miranda, Rodriguez emphasized: Venezuelan administration will not allow excessive increases With basic products.
«We guarantee that our prices are not speculative. “We will not tolerate speculation,” he declared, urging the industry and livestock sectors. Priority supply of domestic products at supportive prices. This is to “guarantee the socio-economic rights” of the people.
The move comes at a critical time for Venezuela’s economy. According to economist Asdrubal Oliveros, the country’s inflation rate exceeded 10% last week, marking the highest level since 2022, CriptoNoticias reported.
This recovery in prices for goods and services coincides with increased political uncertainty, which is putting immediate pressure on currency markets. Reduce the purchasing power of people who earn their income in local currency.
Oliveros warned that unless the flow of currency into the banking system is normalized, it will be “impossible to aim for price stability.” For experts, it is not enough, but it requires input of foreign currency, To recover the economy that has been hit by the financial deterioration.
“Mechanism of adverse effects”
From the perspective of the Austrian economy, price controls are often interpreted as distortions of market signals.
Works by Bitcoin enthusiast Saifedeen Ammas bitcoin pattern, We explain that these mechanisms are usually counterproductive.
“The simple act of imposing value prevents prices from coordinating consumption and production decisions in the market process, which leads to inevitable scarcity,” the authors point out.
Generally, this type of implementation yields similar results in different regions. Recent events in Argentina and historical episodes in the Soviet Union show that by setting prices below market equilibrium, Supply decreases.
Historically, countries that have avoided shortages under this system have managed to do so. Turn measures into temporary or emergency resourcesnever permanent.
Israel’s success in 1985 was accompanied by controls that involved significant cuts in public spending. The United States (1940) avoided major shortages during World War II through strict rationing and subsidies. and in Japan (1973), it was briefly used surgically to stop panic.
In such a case, Supply did not collapse because control was not an isolated toolbut is part of a comprehensive plan to attack the root of the problem or compensate producers.
(Tag Translation) Economy
