How Effective are Price Regulator’s Price Control Measures?

Authors

Biman Chand Prasad, Ministry of Finance, Fiji, Adjunct Prof. Monash University, and Adjunct Prof. James CookFollow
Prof. Paresh K. Narayan, Monash University - AustraliaFollow
Joel Abraham, Fijian Competition and Consumer CommissionFollow

Document Type

Article

Abstract

The Fijian Competition and Consumer Commission (FCCC) is Fiji’s price regulatory. If price control measures are effective, they should not contribute to inflation. This note tests the effectiveness of FCCC’s price controlling role by proposing that it does not lead to inflation. Using time-series regression models, we establish the effect of FCCC’s regulatory effectiveness and show that it contributes to a reduction in prices at least five months after regulated prices come into force. We find that inflation declines by 0.5% or 26% of the sample annualized inflation (which is 1.93%).

Recommended Citation

Prasad, Biman Chand; Narayan, Prof. Paresh K.; and Abraham, Joel (2023) "How Effective are Price Regulator’s Price Control Measures?," Bulletin of Monetary Economics and Banking: Vol. 26: No. 4, Article 1.
DOI: https://doi.org/10.59091/2460-9196.2123
Available at: https://bulletin.bmeb-bi.org/bmeb/vol26/iss4/1

First Page

563

Last Page

570

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Fiji

Affiliation

Deputy Prime Minister & Minister for Finance, Government of Fiji, Fiji Adjunct Professor, Monash University, Australia Adjunct Professor, James Cook University, Australia