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How Effective Are Price Regulator’S Price Control Measures?

Author

Listed:
  • Biman Prasad

    (Monash University, Australia)

  • Paresh K. Narayan

    (Monash University, Australia)

  • Joel Abraham

    (Fijian Competition and Consumer Commission)

Abstract

The Fijian Competition and Consumer Commission (FCCC) is Fiji’s independent price regulatory institution. If price control measures are effective, they could contribute to inflation mitigation. 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%).

Suggested Citation

  • Biman Prasad & Paresh K. Narayan & Joel Abraham, 2023. "How Effective Are Price Regulator’S Price Control Measures?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(4), pages 563-570, November.
    • Handle: RePEc:idn:journl:v:26:y:2023:i:4a:p:563-570
    DOI: https://doi.org/10.59091/2460-9196.2123
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    References listed on IDEAS

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    Keywords

    Price regulatory; Inflation;

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