If a low inflation is considered the best situaion free market wise, how does economic theory solve the problem with ever devaluing money? Wouldn’t it make more sense to bind prices?

Question

See title

In: Economics

Answer 1

Price controls have a long history. A bad history. They cause shortages. Why? At the control price point, there are more buyers that want to buy the product than there are sellers who will sell the product at that price. So some of the buyers don’t get any.