Our latest 📖 Policy Brief 7⃣1⃣ answers the question: Do government #measures to limit food prices have an effect ⁉
1️⃣ Measures to limit food prices have a strong effect only in the first month of implementation, reducing inflation by up to -1%! 📉
2️⃣ After the first month, the effect dissipates due to market adjustments, such as increases in the prices of alternative products. ⚖️
3️⃣ Inflation returns to its previous dynamics immediately after the measures are lifted, but there is no overshooting. 🔄
4️⃣ Finance Think recommends using such measures only during periods of very high inflation. In other cases, structural and market-based measures are needed. 🛠️
🖇 Full brief: shorturl.at/KApmC
#Inflation #Prices #TemporaryEffect #FinanceThink