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Price control, rent control, capital flow controls and generally any policy that try to hamfistedly go against the invisible hand of the market have indeed fail
by himinlomax 4y ago
Price control, rent control, capital flow controls and generally any policy that try to hamfistedly go against the invisible hand of the market have indeed failed repeatedly and catastrophically when used over a long period.
However, as Keynes pointed out, in the long run we're all dead and yet the free market works its magic over the long run. In the short term, there's panics and opportunists that destructively exploit crisis situations. I think it was Stiglitz who pointed out that a few countries that temporarily blocked capital flight during the 90s Asian crisis recovered much more quickly than the rest.