I spoke with my sister in Tel Aviv today and she was on her way out to a protest. I asked her what she was protesting and she told me it was the high cost of living.Adam adds that their are already price controls on milk in Israel. As any first year econ student knows, price controls are surely to bring shortages.
It should be noted that the head of Israel's central bank, Stanley Fisher, was Fed chairman Ben Bernanke's thesis adviser. In 2009, under Fisher's watch money supply grew by 52% in Israel.
You don't even have to be an first year econ student to know that.
ReplyDeleteI am just reading "When Money Dies" by Adam Fergusson and the interplay between monetary inflation and price controls (and other government interventions) in the German and Austrian hyperinflationary periods was just deadly, as if insane money creation alone was not enough.
ReplyDeleteI googled "israel milk shortage", it turned there's been one for quite some time, and they're blaming it on everything from bad weather to short working hours... everything except the price controls...
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