Monday, December 05, 2005

Argentina: Supermarket price controls?

Under government pressure, the leading supermarkets in Argentina have agreed to cut prices by 15%.
The accord comes days after President Néstor Kirchner accused supermarket owners of acting like a "cartel" when setting prices, and is his latest effort to negotiate price controls with industries.
Price controls have a rotten track record, and I don't expect these to work any better than previous efforts.

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