Price Controls Won't Solve Inflation,

 The National Working Group on Trade Policy believes the government's recent attempts to control commodity prices are a clear indication of failed economic management. According to Frederick Changaya, the group's chairperson, the move by the Competition and Fair Trading Commission (CFTC) to stop nine companies from raising prices is misguided. Instead, Changaya argues that the pricing trends are a reflection of runaway inflation, exacerbated by a severe foreign exchange shortage.



Changaya warns that imposing price controls could lead to businesses incurring losses, as the government is not controlling the cost of running businesses, particularly when it comes to foreign exchange. He emphasizes that it's unfair to control the output side of businesses while leaving the input side liberalized. Changaya also highlights the uncertainty of exchange rates, making it challenging for businesses to operate.


To address these challenges, Changaya advocates for crafting responsive monetary and fiscal policies. This approach would help stabilize the economy and address the root causes of inflation and foreign exchange shortages. By adopting a more comprehensive economic management strategy, the government can create a more favorable business environment and promote sustainable economic growth.

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