Balázs Orbán analyzed on the social media page of the political director of the prime minister, where we would be if the government had not introduced and maintained official prices.
"Experts compare the current economic situation and the globally high inflation environment to the years after the Second World War, and they examine the economic policy positions of that time in turn, as they provide an important lesson.
Exactly 76 years ago, in April 1946, the most important American economists of the era published their article in The New York Times arguing for official price regulation.
In an article written by 11 former presidents of the American Economic Association, they argued that a price cap is essential to curb inflation. Official prices may reduce the profits of companies, but society must be protected.
Unfortunately, the economists missed the mark, the Truman administration introduced official pricing, inflation (consumer price index) rose from 3 to 20 percent in 1947 , and was still above 10 percent in 1948.
According to the latest Inflation Report of the Magyar Nemzeti Bank, the reduction in utilities and the food and fuel price freeze will reduce inflation by 4.2 percentage points, based on the Government's calculations, by 4.4 percentage points.
Without the official prices, we would already be at 13 percent inflation."
Source: Facebook
(Header image: MTI)
