Price controls - Revision history

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	'''Price controls''' are government attempts to fix [[price]]s for commodities and services at a height different from what the unhampered market would have determined.<ref name="Mises_price_controls">Ludwig von Mises. [~~http~~://mises.org/humanaction/chap1sec1.asp "1. The Government and the Autonomy of the Market"], Chapter XXX, Interference with the structure of prices, ''[[Human Action]]'' online edition, referenced 2009-09-11.</ref>		'''Price controls''' are government attempts to fix [[price]]s for commodities and services at a height different from what the unhampered market would have determined.<ref name="Mises_price_controls">Ludwig von Mises. [https://mises.freecapitalists.org/humanaction/chap1sec1.asp "1. The Government and the Autonomy of the Market"], Chapter XXX, Interference with the structure of prices, ''[[Human Action]]'' online edition, referenced 2009-09-11.</ref>

	Maximum prices are usually set with the goal of preventing [[inflation]]. There are also opposite regulation attempts, like the [[minimum wage]].		Maximum prices are usually set with the goal of preventing [[inflation]]. There are also opposite regulation attempts, like the [[minimum wage]].
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	'''Other effects:'''		'''Other effects:'''
	* Price controls inhibit recovery after disasters and hurt precisely the people they are intended to help.<ref name="Caden_disasters">Art Caden. [~~http~~://mises.org/story/3025 "Price Controls Create Man-Made Disasters"], posted on Mises Daily on 2008-06-25, referenced 2009-09-11.</ref>		* Price controls inhibit recovery after disasters and hurt precisely the people they are intended to help.<ref name="Caden_disasters">Art Caden. [https://mises.freecapitalists.org/story/3025 "Price Controls Create Man-Made Disasters"], posted on Mises Daily on 2008-06-25, referenced 2009-09-11.</ref>
	* The costs of queuing, evasion, and black markets often lead governments to impose some form of rationing. Rationing must be watched closely and constantly adjusted to reflect fluctuating supplies and demands and the needs of individual consumers. While solving some of the issues, there is a high risk of corruption.<ref name="Rockoff_controls">Hugh Rockoff. [http://www.econlib.org/library/Enc/PriceControls.html "Price Controls"], The Concise Encyclopedia of Economics, referenced 2009-09-12.</ref>		* The costs of queuing, evasion, and black markets often lead governments to impose some form of rationing. Rationing must be watched closely and constantly adjusted to reflect fluctuating supplies and demands and the needs of individual consumers. While solving some of the issues, there is a high risk of corruption.<ref name="Rockoff_controls">Hugh Rockoff. [http://www.econlib.org/library/Enc/PriceControls.html "Price Controls"], The Concise Encyclopedia of Economics, referenced 2009-09-12.</ref>
	* Price controls sometimes, paradoxically, raise prices more than no controls.		* Price controls sometimes, paradoxically, raise prices more than no controls.
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	'''Interest Rate Control as Price Control'''		'''Interest Rate Control as Price Control'''
	:''Main Article: [[Austrian Business Cycle Theory]]''		:''Main Article: [[Austrian Business Cycle Theory]]''
	* [[Interest rate]]s, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [~~http~~://mises.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].		* [[Interest rate]]s, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [https://mises.freecapitalists.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].

	* [[Usury]] laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>		* [[Usury]] laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>
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	\|place=Auburn, Alabama		\|place=Auburn, Alabama
	\|year=2011		\|year=2011
	\|url=~~http~~://~~mises~~.org/~~document~~/~~877/Critique~~-of-~~Interventionism~~-A		\|url=https://freecapitalists.org/books/critique-of-interventionism-a/
	\|isbn=978-1-61016-195-4		\|isbn=978-1-61016-195-4
	\|pages=97-106		\|pages=97-106
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	\|place=Auburn, Alabama		\|place=Auburn, Alabama
	\|year=2006		\|year=2006
	\|url=~~http~~://~~mises~~.org/~~document~~/~~899/Making~~-~~Economic~~-~~Sense~~		\|url=https://freecapitalists.org/books/making-economic-sense/
	\|isbn=0-945466-46-3		\|isbn=0-945466-46-3
	\|pages=123-127		\|pages=123-127
	\|chapter=Price Controls Are Back!		\|chapter=Price Controls Are Back!
	\|chapterurl=~~http~~://mises.org/econsense/ch34.asp		\|chapterurl=https://mises.freecapitalists.org/econsense/ch34.asp
	}}		}}

	==Links==		==Links==
	* Wikipedia pages on [[Wikipedia:Price ceiling\|price ceiling]] and [[Wikipedia:Price floor\|floor]]		* Wikipedia pages on [[Wikipedia:Price ceiling\|price ceiling]] and [[Wikipedia:Price floor\|floor]]
	* D.W. MacKenzie, [~~http~~://mises.org/story/3790 Maximum Confusion over Minimum Wages], Mises Daily from October 28, 2009		* D.W. MacKenzie, [https://mises.freecapitalists.org/story/3790 Maximum Confusion over Minimum Wages], Mises Daily from October 28, 2009
	* [~~http~~://mises.org/daily/4483 The Exploitation of Entrepreneurs] by Aaron Smith, June 2010		* [https://mises.freecapitalists.org/daily/4483 The Exploitation of Entrepreneurs] by Aaron Smith, June 2010
	* [~~http~~://mises.org/daily/4522 Defending the Slumlord] by Walter Block, June 2010		* [https://mises.freecapitalists.org/daily/4522 Defending the Slumlord] by Walter Block, June 2010
	* [~~http~~://mises.org/daily/4809 The 1822 Refutation of the Spitalfields Act of Wage and Price Controls] by Anders Mikkelsen, November 2010; about the ''[http://books.google.com/books/download/Observations_on_the_ruinous_tendency_of.pdf?id=1pAuAAAAYAAJ&output=pdf Observations on the Ruinous Tendency of the Spitalfields Act to the Silk Manufacture of London]'' (pdf), 1822		* [https://mises.freecapitalists.org/daily/4809 The 1822 Refutation of the Spitalfields Act of Wage and Price Controls] by Anders Mikkelsen, November 2010; about the ''[http://books.google.com/books/download/Observations_on_the_ruinous_tendency_of.pdf?id=1pAuAAAAYAAJ&output=pdf Observations on the Ruinous Tendency of the Spitalfields Act to the Silk Manufacture of London]'' (pdf), 1822
	* [http://mises.org/resources/3280/Government-Against-the-Economy Government Against the Economy] by George Reisman, 1979		* [http://mises.org/resources/3280/Government-Against-the-Economy Government Against the Economy] by George Reisman, 1979
	* [http://townhall.com/columnists/walterewilliams/2011/04/27/smugglers_as_heroes Smugglers As Heroes] by Walter E. Williams, April 2011		* [http://townhall.com/columnists/walterewilliams/2011/04/27/smugglers_as_heroes Smugglers As Heroes] by Walter E. Williams, April 2011
	* [http://mises.ca/posts/articles/false-remedy-price-fixing/ False Remedy: Price Fixing] by Henry Hazlitt, 1960 (from ''[https://~~mises~~.org/~~document~~/~~3127/What~~-~~You~~-~~Should~~-~~Know~~-~~About~~-~~Inflation~~ What You Should Know About Inflation]'')		* [http://mises.ca/posts/articles/false-remedy-price-fixing/ False Remedy: Price Fixing] by Henry Hazlitt, 1960 (from ''[https://freecapitalists.org/books/what-you-should-know-about-inflation/ What You Should Know About Inflation]'')

	[[Category:Interventions]]		[[Category:Interventions]]

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Links: +res

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	* [http://mises.org/resources/3280/Government-Against-the-Economy Government Against the Economy] by George Reisman, 1979		* [http://mises.org/resources/3280/Government-Against-the-Economy Government Against the Economy] by George Reisman, 1979
	* [http://townhall.com/columnists/walterewilliams/2011/04/27/smugglers_as_heroes Smugglers As Heroes] by Walter E. Williams, April 2011		* [http://townhall.com/columnists/walterewilliams/2011/04/27/smugglers_as_heroes Smugglers As Heroes] by Walter E. Williams, April 2011
			* [http://mises.ca/posts/articles/false-remedy-price-fixing/ False Remedy: Price Fixing] by Henry Hazlitt, 1960 (from ''[https://mises.org/document/3127/What-You-Should-Know-About-Inflation What You Should Know About Inflation]'')

	[[Category:Interventions]]		[[Category:Interventions]]

Jérôme Alexandre: /* Links */

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Links

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	==Links==		==Links==
	* Wikipedia pages on [[Wikipedia:Price ceiling\|price ceiling]] and [[Wikipedia:Price floor\|floor]]		* Wikipedia pages on [[Wikipedia:Price ceiling\|price ceiling]] and [[Wikipedia:Price floor\|floor]]
	* [[Murray N. Rothbard]], [http://mises.org/econsense/ch34.asp "Making Economic Sense"], Chapter 34: "Price Controls are Back!"
	* [[Ludwig von Mises]], [http://mises.org/etexts/mises/critique/section5.asp "A Critique of Interventionism"], Theory of price controls
	* D.W. MacKenzie, [http://mises.org/story/3790 Maximum Confusion over Minimum Wages], Mises Daily from October 28, 2009		* D.W. MacKenzie, [http://mises.org/story/3790 Maximum Confusion over Minimum Wages], Mises Daily from October 28, 2009
	* [http://mises.org/daily/4483 The Exploitation of Entrepreneurs] by Aaron Smith, June 2010		* [http://mises.org/daily/4483 The Exploitation of Entrepreneurs] by Aaron Smith, June 2010

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Bibliography

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 |year=2009
 |isbn=978-1-61016-140-4
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 * {{cite encyclopedia
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 |isbn=978-0-86597-665-8
 |pages=409-412
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Jérôme Alexandre: Bibliography

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Bibliography

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 ==References==
 {{Reflist}}
 ==Links==
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 * [[Ludwig von Mises]], [http://mises.org/etexts/mises/critique/section5.asp "A Critique of Interventionism"], Theory of price controls
 * D.W. MacKenzie, [http://mises.org/story/3790 Maximum Confusion over Minimum Wages], Mises Daily from October 28, 2009
 * [http://mises.org/daily/4483 The Exploitation of Entrepreneurs] by Aaron Smith, June 2010
 * [http://mises.org/daily/4522 Defending the Slumlord] by Walter Block, June 2010

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Effects: Internalized link.

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	* Controls are demanded by lobbyists to achieve noneconomic ends. Even with noblest of goals, more controls can be called for using similar reasoning. Why stop at regulating one product or a few?		* Controls are demanded by lobbyists to achieve noneconomic ends. Even with noblest of goals, more controls can be called for using similar reasoning. Why stop at regulating one product or a few?
	* Controls create comfortable attitudes. In the market, decisions have to be made, profits rise or fall, firms succeed or go bankrupt, and men are given jobs or laid off. Controls sometimes create the illusion, that these decision do not have to be faced.		* Controls create comfortable attitudes. In the market, decisions have to be made, profits rise or fall, firms succeed or go bankrupt, and men are given jobs or laid off. Controls sometimes create the illusion, that these decision do not have to be faced.
	* The regulatory body becomes more important than the market. Employers and union leaders, observing that wages and prices can be fixed or increased only by the agreement of some regulatory body, pay more attention to influencing the decisions of that body in their own favor than they do to improving their market performance and the productivity of their labor (see also "[[~~Wikipedia:Regulatory capture\|~~regulatory capture]]").		* The regulatory body becomes more important than the market. Employers and union leaders, observing that wages and prices can be fixed or increased only by the agreement of some regulatory body, pay more attention to influencing the decisions of that body in their own favor than they do to improving their market performance and the productivity of their labor (see also "[[regulatory capture]]").
	* Controls draw attention away from the real causes of inflation, and the need for actual reforms.		* Controls draw attention away from the real causes of inflation, and the need for actual reforms.
	* Controls shift the traditional economic powers from consumers to government, labor organizations and businesses.		* Controls shift the traditional economic powers from consumers to government, labor organizations and businesses.

Pestergaines: /* Effects */ +link

2011-11-26T11:22:54Z

Effects: +link

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	* [[Interest rate]]s, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].		* [[Interest rate]]s, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].

	* Usury laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>		* [[Usury]] laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>

	==References==		==References==

Pestergaines: +Link to Minimum wage.

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+Link to Minimum wage.

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	'''Price controls''' are government attempts to fix [[price]]s for commodities and services at a height different from what the unhampered market would have determined.<ref name="Mises_price_controls">Ludwig von Mises. [http://mises.org/humanaction/chap1sec1.asp "1. The Government and the Autonomy of the Market"], Chapter XXX, Interference with the structure of prices, ''[[Human Action]]'' online edition, referenced 2009-09-11.</ref>		'''Price controls''' are government attempts to fix [[price]]s for commodities and services at a height different from what the unhampered market would have determined.<ref name="Mises_price_controls">Ludwig von Mises. [http://mises.org/humanaction/chap1sec1.asp "1. The Government and the Autonomy of the Market"], Chapter XXX, Interference with the structure of prices, ''[[Human Action]]'' online edition, referenced 2009-09-11.</ref>

	Maximum prices are usually set with the goal of preventing [[inflation]].		Maximum prices are usually set with the goal of preventing [[inflation]]. There are also opposite regulation attempts, like the [[minimum wage]].

	==History==		==History==
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	'''Interest Rate Control as Price Control'''		'''Interest Rate Control as Price Control'''
	:''Main Article: [[Austrian Business Cycle Theory]]''		:''Main Article: [[Austrian Business Cycle Theory]]''
	* Interest ~~rates~~, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].		* [[Interest rate]]s, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].

	* Usury laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>		* Usury laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>

Huckelberry: /* Effects */

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Effects

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	* Interest rates, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].		* Interest rates, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [http://mises.org/humanaction/chap19sec2.asp XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].

	* Usury laws place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>		* Usury laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>

	==References==		==References==

← Older revision		Revision as of 04:22, 16 August 2026
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	'''Price controls''' are government attempts to fix [[price]]s for commodities and services at a height different from what the unhampered market would have determined.<ref name="Mises_price_controls">Ludwig von Mises. [https://~~mises.~~freecapitalists.org/~~humanaction~~/~~chap1sec1.asp~~ "1. The Government and the Autonomy of the Market"], Chapter XXX, Interference with the structure of prices, ''[[Human Action]]'' online edition, referenced 2009-09-11.</ref>		'''Price controls''' are government attempts to fix [[price]]s for commodities and services at a height different from what the unhampered market would have determined.<ref name="Mises_price_controls">Ludwig von Mises. [https://freecapitalists.org/books/human-action/read/chapter-i-acting-man/ "1. The Government and the Autonomy of the Market"], Chapter XXX, Interference with the structure of prices, ''[[Human Action]]'' online edition, referenced 2009-09-11.</ref>

	Maximum prices are usually set with the goal of preventing [[inflation]]. There are also opposite regulation attempts, like the [[minimum wage]].		Maximum prices are usually set with the goal of preventing [[inflation]]. There are also opposite regulation attempts, like the [[minimum wage]].
Line 50:		Line 50:
	'''Interest Rate Control as Price Control'''		'''Interest Rate Control as Price Control'''
	:''Main Article: [[Austrian Business Cycle Theory]]''		:''Main Article: [[Austrian Business Cycle Theory]]''
	* [[Interest rate]]s, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [https://~~mises.~~freecapitalists.org/~~humanaction~~/~~chap19sec2.asp~~ XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].		* [[Interest rate]]s, in the Austrian tradition, serve as signals of time preference in society. They are the discount of future goods against present goods. In this sense, they are not considered prices.<ref name="mises__human_action_chap19sec2">[[Ludwig von Mises]]. [https://freecapitalists.org/books/human-action/read/chapter-xix-the-rate-of-interest/ XIX. The Rate of Interest], Originary Interest, [[Human Action]], online version, referenced 2011-04-29.</ref> Nevertheless, interest rate control, like price controls generally, distort the efficient operation of the market economy. The effects of artificial lowering of the interest rate is described in the [[Austrian Business Cycle Theory]].

	* [[Usury]] laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>		* [[Usury]] laws typically place a maximum level of interest which people can demand on the market. This is a form of price control. The result will be that individuals will stop saving or not save as much as they otherwise would have. The effects of usury laws depend on the maximum height allowable by law and by the effectiveness of the controls. Usury laws, specifically ones fixing the interest rate below the natural rate, will create an artificial shortage of credit because there is excess demand for funds at the legal rate and a shortage of supply.<ref name="rothbard_mes_chap15a">[[Murray Rothbard]]. [http://mises.org/rothbard/mes/chap15a.asp XV. TRIANGULAR INTERVENTION], 1. Price Controls, [[Man, Economy, and State]], online version, referenced 2011-04-29.</ref>
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	* [https://mises.freecapitalists.org/daily/4522 Defending the Slumlord] by Walter Block, June 2010		* [https://mises.freecapitalists.org/daily/4522 Defending the Slumlord] by Walter Block, June 2010
	* [https://mises.freecapitalists.org/daily/4809 The 1822 Refutation of the Spitalfields Act of Wage and Price Controls] by Anders Mikkelsen, November 2010; about the ''[http://books.google.com/books/download/Observations_on_the_ruinous_tendency_of.pdf?id=1pAuAAAAYAAJ&output=pdf Observations on the Ruinous Tendency of the Spitalfields Act to the Silk Manufacture of London]'' (pdf), 1822		* [https://mises.freecapitalists.org/daily/4809 The 1822 Refutation of the Spitalfields Act of Wage and Price Controls] by Anders Mikkelsen, November 2010; about the ''[http://books.google.com/books/download/Observations_on_the_ruinous_tendency_of.pdf?id=1pAuAAAAYAAJ&output=pdf Observations on the Ruinous Tendency of the Spitalfields Act to the Silk Manufacture of London]'' (pdf), 1822
	* [~~http~~://~~mises~~.org/~~resources~~/~~3280/Government~~-~~Against~~-the-~~Economy~~ Government Against the Economy] by George Reisman, 1979		* [https://freecapitalists.org/books/government-against-the-economy/ Government Against the Economy] by George Reisman, 1979
	* [http://townhall.com/columnists/walterewilliams/2011/04/27/smugglers_as_heroes Smugglers As Heroes] by Walter E. Williams, April 2011		* [http://townhall.com/columnists/walterewilliams/2011/04/27/smugglers_as_heroes Smugglers As Heroes] by Walter E. Williams, April 2011
	* [http://mises.ca/posts/articles/false-remedy-price-fixing/ False Remedy: Price Fixing] by Henry Hazlitt, 1960 (from ''[https://freecapitalists.org/books/what-you-should-know-about-inflation/ What You Should Know About Inflation]'')		* [http://mises.ca/posts/articles/false-remedy-price-fixing/ False Remedy: Price Fixing] by Henry Hazlitt, 1960 (from ''[https://freecapitalists.org/books/what-you-should-know-about-inflation/ What You Should Know About Inflation]'')

	[[Category:Interventions]]		[[Category:Interventions]]