21 October 2018, Sunday, 18:29
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Economist: Prices Grow As Soon As State Sets To Regulate Them

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The IMF has long insisted on the abolition of state regulation of prices.

In the past year, prices regulated by the authorities grew almost 2 times faster than those that form freely. According to the statistics provided by the National Bank, the increase in administratively regulated prices and tariffs amounted to more than 8% in Belarus over the year.

As the economist Leu Marholin told Radio Racyja, prices could be lower if the authorities did not interfere in normal market relations.

– This is a common practice. As soon as the state sets to regulate the prices, they immediately begin to grow. The market is the best regulator. It allows prices to be neither high nor low, but just as they should be. And the state ... here the one with a stronger throat and a stronger voice wins in bargaining for a raise.

The International Monetary Fund and the Eurasian Fund for Stabilization and Development have been insisting on the abolition of state regulation of prices for a long time.