REFLECTIONS ON PRICE CONTROL.

The article discusses the pre-war undervaluation of price control by economists as the instrument of emergency policy in the U.S. The issuance of the General Maximum Price Regulation (GMPR) was an act of desperation which is by all odds the most important single step in war-time price policy. A Statement of Considerations that accompanied the GMPR states that there can be no effective price control while at the same time there is a large amount of power to purchase. The passage of the Price Control Act in 1942 was believed by the Congress and the Country to insure reasonably stable prices.