Price Controls : Good Intentions, Bad Outcomes

Price Controls : Good Intentions, Bad Outcomes

The use of price controls is widespread across emerging markets and developing economies, including for food and key imported and exported commodities. Although they are sometimes used as a tool for social policy, price controls can dampen investment and growth, worsen poverty outcomes, cause c...

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Bibliographic Details
Main Author: Guenette, Justin-Damien
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
PRICE CONTROL
PRICE POLICY
INCOMES POLICY
PUBLIC EXPENDITURE
SUBSIDIES
SAFETY NETS
SOCIAL WELFARE PROGRAMS
Online Access:http://documents.worldbank.org/curated/en/735161586781898890/Price-Controls-Good-Intentions-Bad-Outcomes
http://hdl.handle.net/10986/33606
id okr-10986-33606
recordtype oai_dc
spelling okr-10986-336062022-09-20T00:10:33Z Price Controls : Good Intentions, Bad Outcomes Guenette, Justin-Damien PRICE CONTROL PRICE POLICY INCOMES POLICY PUBLIC EXPENDITURE SUBSIDIES SAFETY NETS SOCIAL WELFARE PROGRAMS The use of price controls is widespread across emerging markets and developing economies, including for food and key imported and exported commodities. Although they are sometimes used as a tool for social policy, price controls can dampen investment and growth, worsen poverty outcomes, cause countries to incur heavy fiscal burdens, and complicate the effective conduct of monetary policy. Replacing price controls with expanded and better-targeted social safety nets, coupled with reforms to encourage competition and a sound regulatory environment, can be pro-poor and pro-growth. Such reforms need to be carefully communicated and sequenced to ensure political and social acceptance. Where they exist, price control regimes should be transparent and supported by well-capitalized stabilization funds or national hedging strategies to ensure fiscal sustainability. 2020-04-16T19:29:05Z 2020-04-16T19:29:05Z 2020-04 Working Paper http://documents.worldbank.org/curated/en/735161586781898890/Price-Controls-Good-Intentions-Bad-Outcomes http://hdl.handle.net/10986/33606 English Policy Research Working Paper;No. 9212 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PRICE CONTROL
PRICE POLICY
INCOMES POLICY
PUBLIC EXPENDITURE
SUBSIDIES
SAFETY NETS
SOCIAL WELFARE PROGRAMS
spellingShingle PRICE CONTROL
PRICE POLICY
INCOMES POLICY
PUBLIC EXPENDITURE
SUBSIDIES
SAFETY NETS
SOCIAL WELFARE PROGRAMS
Guenette, Justin-Damien
Price Controls : Good Intentions, Bad Outcomes
relation Policy Research Working Paper;No. 9212
description The use of price controls is widespread across emerging markets and developing economies, including for food and key imported and exported commodities. Although they are sometimes used as a tool for social policy, price controls can dampen investment and growth, worsen poverty outcomes, cause countries to incur heavy fiscal burdens, and complicate the effective conduct of monetary policy. Replacing price controls with expanded and better-targeted social safety nets, coupled with reforms to encourage competition and a sound regulatory environment, can be pro-poor and pro-growth. Such reforms need to be carefully communicated and sequenced to ensure political and social acceptance. Where they exist, price control regimes should be transparent and supported by well-capitalized stabilization funds or national hedging strategies to ensure fiscal sustainability.
format Working Paper
author Guenette, Justin-Damien
author_facet Guenette, Justin-Damien
author_sort Guenette, Justin-Damien
title Price Controls : Good Intentions, Bad Outcomes
title_short Price Controls : Good Intentions, Bad Outcomes
title_full Price Controls : Good Intentions, Bad Outcomes
title_fullStr Price Controls : Good Intentions, Bad Outcomes
title_full_unstemmed Price Controls : Good Intentions, Bad Outcomes
title_sort price controls : good intentions, bad outcomes
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/735161586781898890/Price-Controls-Good-Intentions-Bad-Outcomes
http://hdl.handle.net/10986/33606
_version_ 1764479128519573504

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