Price controls may appeal to officials eager to be seen to be doing something about rising inflation, but China’s experience with controls has not been encouraging. For markets, they could play either way. Investors may conclude that such a step makes conventional monetary tightening less urgent. More likely, the need to resort to such a step would fan fears that the government was going all-out to tame inflation.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.