Setting limit prices – a mistake or a necessity, the experience of developed countries of the world

Картинки по запросу продукты питанияAs reported in the consumers. The State Committee of the Republic of Uzbekistan on Assistance to Privatized Enterprises and Development of Competition provides important information to the Consumer. Limit prices for certain types of products are set in the markets of Tashkent from November 1 to 30. The document was signed by the hokim of Tashkent and the heads of the responsible committees and organizations.

The maximum prices for products for November 2017 in Uzbekistan: beef 1 kg. – 33 thousand soums (4 dollars), lamb 1 kg. – 34 thousand soums (4.21 dollars), potatoes 1 kg. – 3 thousand soums ($ 0.37), onions 1 kg – 3 thousand soums ($ 0.24), carrots 1 kg. – 1,5 thousand soums ($ 0,2), rice by types from 3600 to 6500 soums ($ 0.44-0.80), chicken meat 1 kg. – 18 thousand soums ($ 2.2), fish meat 1 kg. – 15 thousand soums ($ 1.8) and an egg – 500 soums ($ 0.06) apiece.

After a rise in price of gasoline by almost one and a half times – retailers and wholesalers will naturally try to raise prices for products. This is a kind of measure against the sharp rise in the cost of food in the transition period. To preserve the purchasing power of the population in relation to the basic types of foodstuffs, the hokimiyat will probably regulate the maximum prices of specific types of products for a certain period of time. Since, according to official statistics, 44.3% of consumer spending is spent on food products, the authorities decided to start from them.

At present, this decree can lead to different outcomes.

1.If all sellers will treat the order with a conscience and sell at reasonable prices then all prices will be safely available to consumers in the established measures and the goal will be achieved.

2. If the sellers have been selling the product cheaper before this time than the indicated maximum prices, now they will try to bring prices closer to the maximum set prices, since this serves as a signal to them that their products can be sold and more expensive as noted in the document.

3. If sellers have more expenses when buying products and can not afford such low prices for sale, then they will try to find other indirect ways of selling products more expensive. There may be goods under the counter as it was in Soviet times. Or use other methods like meat (more bones in kg) or adjust the scales to reduce weight.

We hope that the sellers will choose the first outcome, but alas already many sellers in the head have a second and the third outcome rotates without stopping. For a pure market economy, this method is less effective, but in the transition periods even in developed countries different methods of regulating and controlling prices have been applied, and in some of them this practice is still in effect.

Below are examples of price regulation and control in countries with developed market economies.

Austria. State regulation of prices in Austria was introduced after the Second World War due to the difficult situation of the country’s economy and the acute shortage of many of the most important consumer and industrial goods.

At the first stage (1945-1950) prices were regulated for virtually all goods and services, however, as the economic situation became normal and the mechanism of market self-regulation became more and more, their number gradually decreased.

At present, state regulation of prices is carried out on the basis of the law on prices, adopted in 1976 (in the edition of 1988). They are managed by the relevant departments of the Ministry of Economy, the Ministry of Health, the Ministry of Agriculture and Forestry. The law defines the list of goods and services for which the Minister of Economy (and the Minister of Health for pharmaceuticals) has the right to set maximum, minimum and firmly fixed prices. However, in practice, the maximum prices are set, i.e. the upper limit, the excess of which is not allowed.

The law provides that in the event of a crisis situation, the Ministry of Economics may introduce price regulation of virtually any goods for the crisis period. In addition, according to the law, the Minister of Economy can introduce price regulation for a period of up to six months for any product or type of services if they are unreasonably overstated by industry in general or by a separate enterprise or group of enterprises dominating the market.

At the same time, the legislation proceeds from the fact that the prices set by the Ministry of Economy should be economically justified first of all from the point of view of priority consideration of the interests of the development of the country’s economy as a whole and consumers, and not the actual cost of production of a separate enterprise.

The prices of goods and services for which there is a state monopoly in Austria (tobacco and tobacco products, salt, postal fees, telephone, telegraph and railway tariffs) are established by special decrees of the Parliament. The Ministry of Finance accepts the prices of alcoholic beverages.

The law on prices determined by the general rules of their establishment on imported goods (fruit, vegetables, coffee, cocoa, fertilizer, animal feed). In the domestic market prices of these goods must not exceed the actual purchase, import prices, increased the size of the economically substantiated costs and the importer’s profit. In the case of the reduction or abolition of customs duties on imported goods must be reduced in proportion to their prices in the domestic market. Violation of these rules shall be punished by a fine. Regulated rates of scrap and waste ferrous metals, pharmaceutical materials and pharmaceuticals, gas, electricity and heat.

A feature of the post-war development in Austria was the creation of an organizational structure that ensures the interaction between the government, employers, trade unions and individuals hired labor, and known as the social partnership system. Its aim is to prevent social conflicts by achieving compromise solutions on emerging acute issues in the negotiations. The jurisdiction established under this partnership, the Joint Commission on prices and wages, which is headed by the Federal Chancellor of Austria, sent the following issues:

  • pricing of new products, which checks whether there are indeed signs of novelty and correct to the associated increase in the price;
  • the determination of prices of imported goods, which investigated the causes of the gap of the price and the prices of similar goods in the internal market and measures to reduce it;
  • to monitor the dynamics of prices and tariffs in individual sectors (hospitality, some utilities and household services, transport fares);
  • pricing of white bread and bakery products;
  • approval of the price of certain types of textiles (cotton fabrics, bed linen);
  • determining the amount of premiums and discounts on imported raw commodity (tin, zinc, copper, etc.);
  • Nenov collecting information and identifying ways to bring to the interested parties.

In modern conditions of development of market economy, the scope of the Austrian state-controlled pricing is approximately 10% of total output.

Germany. In Germany, the state regulates and controls up to 40% of the prices of industrial and consumer goods and services, while it subsidizes municipal housing, which ultimately allows the government to actively influence the dynamics of prices and keep inflation under control.

The transition from a centrally planned to a regulated market economy in Germany came decisively and consistently. Carefully prepared by the monetary reform was carried out simultaneously with the price reform and centralized management restructuring.

In the mid-1930s. I began to form a centralized distribution economic mechanism. It was based on a combination of a balanced four-year plan of the central and solid prices. However, such a policy is threatened by high inflation. Therefore, in 1935, there was a price freeze, Germany embarked on the path of suppressed inflation. In 1945-1948 gg. one part of Germany (East Germany) has chosen a centrally managed economy, and another (Germany) embarked on a regulated market mechanism of monetary and economic performance with strong social preferences. Currency reform and the transition to a market economy were implemented simultaneously. After the currency reform in the Federal Republic of Germany abolished the planned management of the economy and the central purpose of the price, announced the transition to a market economy. However, the extreme post-war situation required to enter some exceptions for a transitional period, especially when it came to solving the housing problem. In 1948 a law was passed against arbitrary price increases. For some goods prices remained under state supervision (especially for food). The longest – until the restoration of convertibility of the German mark (1958) – Hold the centralized management of means of payment.

In Germany, there is a purely market-based pricing system in agriculture. The state in this area supports manufacturers. Prices are focused on cost-recovery level. agricultural producers are at a disadvantage due to the different soil fertility. Accordingly, the cost of each farm is different, and the products are sold at an average price. Who better performance – higher profits. Who costs the average price, the products can be unclaimed. The state protects national producers on the market, guaranteeing payment to farmers supply the required amount of product. Widely used quota, i.e. every farmer knows in advance how much meat, milk and other products, buy his state. If the products are released in excess of the quota allocated,

Currently in Germany are largely free-market price, effectively taking into account the balance of supply and demand mechanism, meet the needs of the whole society, and mitigating the social consequences of inadequately protected segments of the population. Especially it should be emphasized that in Germany and now with the successful development of the economy of the country the proportion of regulated and state-controlled prices of consumer and industrial goods and services remains high.

The experience of the reforms in Germany shows that the establishment of economic equilibrium is a primary prerequisite to ensure that started to operate monetary and market mechanism to “inverted minimum-maximum” (the maximum input at the minimum output), which is characteristic of the behavior of companies with a centralized distribution mechanism was replaced by “normal minimum-maximum” (minimum input at maximum output) companies operating in an environment of market competition.

Transition to cost effective supply and demand – is the most difficult step as a professional and a social and political point of view. It requires skilled and fundamental analysis and forecast of the potential price equilibrium that emerged on the basis of existing, historical production costs, since the transition to the cost effective supply and demand will cause major structural changes in the economy, which will affect the income of companies and different sectors of the population. Therefore, the potential equilibrium price should be included, and the cost of creating a temporary central fund grants that would fund the program for the consolidation of the business sphere, including the necessary costs for the adaptation of the labor market (unemployment benefits, the cost of training and retraining of personnel).

An integral part of the price of the potential balance should be and the costs of creating a compensation fund designed to equalize, or at least mitigate the social impact of vulnerable groups (large families, the disabled, pensioners).

taxation system device, interest rates, based on the price calculation of the potential balance must come from providing the necessary income of the state budget to ensure the satisfaction of non-economic needs of society (social security and health care, education and training, culture, environment), including the possible savings of the state budget. This calculation should be the basis for quantifying the emission of long-term government bonds in the first place for the public to prevent the conversion of part of the funds in the “hot” money, generating high demand.

Greece. free market prices for industrial and consumer products and services are widely used in modern conditions of economic development in Greece.

State regulation of pricing in Greece is carried out both by direct pricing and monitoring of their implementation, and the implementation of price and income policy at certain stages of development of the country within the framework of general economic policy or in certain sectors of the economy.

Currently, prices are approximately 20% of names of consumer goods and services are regulated by the public authorities. The legal basis for this regulation is the decree of the president approved in 1989. This document introduces a Code of market regulation, according to which all provisions subject to price regulation of goods and services are divided into two groups.

The first group includes goods and services, the pricing of which is the responsibility of the government and other public organizations. These include mass production of agricultural products, electricity, public transport, communications, postage, air passenger transport and certain other services. issues a decision on the price changes of goods and services rests with the Inter-ministerial Committee on prices and incomes, which is headed by the minister of national economy.

The second group consists of all other goods and services. Regulation of prices by the Minister of trade. In this second group is divided into three categories of goods and services:

  • Significant failure;
  • Significant enough;
  • irrelevant.

For the first category of goods and services set the upper limit of the price or the maximum profit (in percentage or absolute terms) separately for the wholesale and retail units. This category primarily includes basic food and non-alcoholic beverages, restaurant services, fast (low category), agricultural implements, some types of cars, gasoline, fuel oil and other products (over 120 items).

Prices of goods and services of the second category (detergents, some raw materials and semi-finished products, parking services, restaurants higher categories, cleaning items – more than 80 positions) are controlled only in order to prevent the receipt of trading profits.

Prices of goods and services of the third category, which are not considered essential items, are formed freely, without the involvement of public authorities.

It is important to note that the list of goods included in one or another category, quite mobile.

Regulation of prices of individual products, product groups and services has its own characteristics. Thus, the price of pharmaceutical products established by the Minister of trade on the basis of the minimum price of Europe’s leading pharmaceutical companies, and in consultation with the Union of pharmaceutical companies and the Ministry of Health.

Since 1987 the rental value of housing is determined by the state, although almost all the housing stock is privately owned. It is calculated based on the value of the land, and the degree of wear of the building storeys coefficient. Prices are fixed for two years.

In accordance with the decision of the government, industrial, handicraft and foreign trade enterprises in a number of industries are required to submit to the local trade inspection pricing if they change, as well as proposals on the market of new products.

Control over compliance with regulated prices and the collection of information about the market prices prevailing by a special department of the Ministry of Commerce. The jurisdiction of this ministry is also a special service – the market police, who regularly monitors the markets and prices in the shops.

In order to maintain prices at a reduced level and an increase in sales of goods of consumer and household goods in the country twice a year, the sale of goods at reduced prices.

For infringement of the pricing rules or the rules of competition Competition Committee is empowered to make decisions on collecting fines from 300 to 30 000 dollars.

Denmark.pricing system in Denmark consists mainly under the influence of market factors. State regulation of pricing is very limited and is reduced mainly to promote the creation of favorable conditions for free competition of private producers who independently establish the prices of their products on the basis of criteria such as the volume of production costs, supply and demand, market conditions, and others.

Prices and tariffs in the public sector, the extent of which are small, are defined by municipal and city authorities.

Specific weight mounted directly or solid state controlled prices is about 5%.

Flexible use of consumption taxes allows the government to influence the level of prices of certain goods and to have an impact on consumption (for example, to limit the consumption of alcoholic beverages, tobacco products, etc..).

The main legal instrument is the pricing competition law, passed by Parliament June 1, 1989 The supervision of the activities of monopolies in pricing provides the Competition Council, whose members are appointed by the Minister of Industry for four years. In case of violation of the order of pricing Council obliges the company for a certain period of time (up to one year) entered reasonable prices or use specific rules for calculating them. If the company repeatedly violates the provisions of the Competition Act, the Ministry of Industry may impose penalties for it.

Although Denmark is virtually no system of state subsidies to the prices consumers are provided government subsidies for the purchase of medicines. However, this order is considered as an element of the social security system, and not as a subsidy to the price.

The process of price formation for agricultural products formed under the influence of the EU agricultural policy framework. In this case, in Denmark there is a fairly extensive system of state support for farmers, which provides, in particular, the provision of state guarantees for loans and preferential rental conditions for capital construction, maintenance of drainage and irrigation works, implementation of energy saving systems. Young farmers who have purchased their own farm, is aid in the form of soft loans.

Spain. The process of pricing in Spain is carried out mainly under the influence of market factors.

State regulation and control of prices in the country are carried out on essential items, as well as goods and services, which monopolized production. Lists of goods and services subject to compulsory pricing, regularly published in the bulletins of commercial information. This applies mostly to public sector enterprises and products of some private companies. Control over the formation of prices by the Higher Council for the prices at the Ministry of Economy and Finance, is a working body of the Government Commission for Economic Affairs, established by royal decree in 1977

The main functions of the Supreme Council are:

  • consideration of the plenary meetings of applications of public and private companies to change the prices of specific goods and services;
  • develop recommendations and submit to the Government Commission for Economic Affairs informed of proposals for changes in prices;
  • Informing the interested public and private companies on the outcome of a government commission issues;
  • supervise the implementation of the decisions of the government commission private and public companies;
  • Coordination of the activities of local commissions on prices;
  • the study and application of the government commission justified proposals for the revision of the current prices of goods and services.

State regulation of prices in Spain is carried out on the basis of authorization, notification, and local prices.

Permitting prices.Public or private company, which provides an increase in prices of a particular product or service, submits an application to the High Council on prices and after obtaining permission from the government commission shall do so. These prices are set for electricity, gas, gasoline, kerosene, oil and other fuels, pharmaceuticals, postal services, and telecommunications, rail and road transport, sea and air transport of passengers within the country and others.

Notification rates.The increase in prices of commodities such as UHT milk, vegetable oil, cornmeal, mineral fertilizers, produced after the notification of the Supreme Council for the prices of the impending increase in their one month prior to its implementation.

Local prices.The increase in prices of goods and services such as water for the needs of the population, urban passenger transport, clinic services, health centers, hospitals, is the responsibility of local commissions for prices.

In all cases, the petition sent to the Supreme Council for the Yen or the local commission should contain:

1) a description of the goods and services that are offered higher prices;

2) the structure of production costs, current prices (tariffs) of goods and services, as well as prospective new prices (tariffs);

3) study the growth of production costs, and hence increasing the foams.

In Spain, there is no uniform methodology for determining the prices, including new products. At the same time, the level of wholesale prices in the country is not much different from the world of similar types of goods.

List of goods and services whose prices are subject to government regulation, decreased significantly in recent years. The number of sectors of the economy, where the practice of active state intervention in the pricing process, reduced from 174 to 21. At present, the share of installed directly by the state-regulated prices in the overall consumer price is about 10%.

Italy. Regulation of prices in the country is carried Interministerial Committee for the discipline and the coordination of prices and price local committees. At the local level, regulated prices of the main types of products (goods and services), which include energy, cement, fertilizers, medicines, bread, cooking oil, fresh beef, fresh milk, salt, sugar, certain types of services and newspapers. Furthermore, under the supervision committees are the prices of some food (pasta, vegetable oil, pork, lamb, poultry, sausages, ham, etc.) And non-food (oil, glass, detergents, etc.) Of the goods.

The country has an extensive state control over prices. Much attention is paid to the collection, processing and distribution of price information. The procedure for collection of information depends on the types of goods and services. For example, data on the prices of fresh fish, vegetables and fruits are updated every ten days (5.15, 25th day of each month), data on prices of other basic foodstuffs and industrial goods and services – monthly (15 day of). On the basis of information received each month are calculated indexes of retail prices and cost of living (for the whole population, for the families of workers and employees), on the basis of which the public pays cash compensation.

At the same time regularly and widely held in the country, seasonal sale of consumer goods to the population at significantly reduced prices.

In general, the Italian State controls and monitors up to 30% of the prices of industrial and consumer goods and services.

China. At the end of the 1970s. in this country, it was decided on the need for comprehensive reform of the economic system designed to speed up the effective development of the economy.

The transition to a new model of management, based on the use of economic instruments and incentives have been impossible without the pricing adjustment, developed in the framework of the traditional “product of the economy.” Gradual reform of the system has become an important and necessary element in the transformation of the economic system as a whole.

The first phase of reform(1979-1984 gg.) Consisted in reviewing unsustainable levels and the ratio of the prices prevailing in the traditional economic system.

The most important element of the reform was a significant increase in purchase prices of agricultural products sector, especially cereals, and utility industries. As previously overly conservative, the purchase price did not allow manufacturers to either make a profit or even to reimburse the costs of production. As a result of the reform of the index of growth of prices in this category as a whole was 53.6%. Simultaneously there was a restructuring of the procurement: with an increase in the planned price of agricultural products increased the proportion of purchases made at bargain prices (exceeding the planned 30-50%); permits implementations peasants surplus produce on the free market at free prices.

At the same time, a one-way upward revision of procurement prices of agriculture products sector with consistently low levels of its state retail prices has led to a paradoxical from an economic point of view the situation when the purchase price was higher than retail. On the state budget has laid down a double burden of subsidies: The state assumed the partial reimbursement of both consumers and producers.

Another important area in the first stage of price reform was a gradual settlement in respect of the main types of raw materials and energy. The transition to economic methods of management require a radical overhaul of the system. The first step was to increase the transformation since 1979 The electricity price, coal, iron, coke, cement and steel products. As a result, a gradual revision of multiple price levels in 1987 they increased as compared to 1978 on mining products by 77% of raw materials – 55% for manufactured goods – by 21%.

Chinese economists have described the content of the first phase of the reform as a break-up of the old economic system and establishment of a new mechanism of functioning of the economy. In turn rearrangement economic mechanism price system as an essential element was the task of the first reform ethane. However, in the 1978- 1984 biennium. It was made only the first steps in this direction, which affected almost all prices and the pricing system. The bulk of the reforms has been moved to the second stage of the reform, an important characteristic is the coexistence of old and new economies.

The second phase of the reform(1989-1991 gg.) Characterized as a transition to the Planning and commodity economy, which was accompanied by a significant expansion of the company’s rights in the area of ​​pricing.

The reform has been a significant reduction in the scope of mandatory planning, replacing it with indicative planning and market regulation, carried out at the micro level increase economic independence and accountability of public enterprises, a significant expansion of the scope of the collective activity of individual and private economy. All this required the formation of a more developed market relations. In the process of quantitative expansion and qualitative improvement was formed and developed pricing system, the main feature of which was its multiplicity. Widely used four basic types of prices: single price plan, “floating” planned prices, bargain prices and free market prices.

a single target price ceded its monopoly position and began to show a steady trend towards a gradual reduction of range of products, which sets the prices of this category, in accordance with a decrease in the scope of the directive planning in the emerging system of prices. The most dynamic and promising price categories at this stage of the reform, Chinese economists believed regulated by the state ( “floating”) price – extremely high and extremely low. This approach is defined by the fact that the interim nature of the “floating” prices the most adequate to the transition state of the economy, the emerging new economic mechanism – the state regulates the market, the market is oriented enterprise. “Floating” the price is seen as the result of government intervention in the process of market pricing. On the one hand, as opposed to a single plan price pricing subject in this case is a company, which takes into account the costs and the value of the ratio of supply and demand. On the other hand, in contrast to market pricing set by the state hard limit price fluctuations in one direction or another to stabilize the market and to avoid chaotic phenomena.

For the current phase of the reform is characterized by changes in the pricing system of the means of production (especially for raw materials, energy). Further, the conversion went in the direction of the phase-out of single monopoly planned prices of means of production, the constant release prices by going to the realization of the products by the enterprises themselves on the “floating” and then at the market price.

For each of the critical resources (coal, oil, steel products, wood, electricity, etc.) at the same time, two kinds of prices were used:

1) solid state planned prices (set for distributed centrally of the respective production sectors);

2) market prices (regulated by the state or free).

Other production companies implemented their own through the market. For example, a ton of crude oil as a function of the channel realization could be sold for 115 yuan (state scheduled price), 145 yuan (regulated state price) or 490 yuan (free market price).

In general, the second stage of the reform of the pricing inherent remarkable feature – a sufficiently high degree of controllability of the overall price dynamics. She had wavy character. Active steps towards the liberalization of prices combined with a return to state regulation in cases where the increase in consumer prices gained inflationary. This pricing strategy is flexible and maximally protects the population from declining revenues. After all, the main purpose of the reform was to create conditions to stimulate growth and productivity.

The third phase of the reformIt began in 1992. Its essence – the transition to a socialist market economy. At this stage it had the most difficult: to let energy prices, which undoubtedly increased inflation.

In 1992, 14 years after the beginning of the reform, the state controlled 20% of the foam. It maintains the practice of planning vital proportions of reproduction and regulation of prices of basic products. However, the scope of this regulation gradually narrowed to the extent that the balance of supply and demand of specific products.

To create a competitive environment the bulk of enterprises, including state, had the right to determine the range of products. To this end, increased imports of commodities in short supply on the domestic market supply additional products created in special economic zones.

Foreign capital was involved not only in the special economic zones, but also increasingly in the internal regions of China. The economy has acquired the features of all-round opening.

for economic reform, the Commission together with the State Planning Committee developed the annual plans as well as plans to implement reforms before 2000. They define when and how to carry out those or other economic activities. Drawn up three options for each of these plans: rapid, medium and slow. For each of them calculated the costs of implementation. All options were discussed with scientists, businesses, departments and regions. After the appropriate improvements, they were sent to the State Council consideration, which, after discussion and revision represented the final version of the National People’s Congress.

However, approved by National People’s Congress a plan is not a directive. This is only a reference point for the future. Each region and each ministry on the basis of his own plan, in which they can provide a faster or a slower implementation of various economic measures, depending on the specific situation in the region or industry.

Thus, China has a combined price control system. As a result of state regulation of prices to some extent smoothed out imbalances in their relations. Given the specificity of the Chinese economy, the existence of certain goods deficit was adopted policy of gradual liberalization of prices. The price system was the only market in the sectors in which the market has become China’s economy as the basis of the last remains state property. Accelerated implementation of price reform has demonstrated a risk of inconsistency in the implementation of the whole complex of market reforms. Further liberalization of the prices associated with the process of significant changes in the operation of large and medium state-owned enterprises.

Should pay attention to flexible pricing policy in China, responsive to the operational course corrections reforms, depending on the changes taking place in the economic life. In this country, the deterioration of the situation to a critical level is not permitted, it remains stable as a basis for future changes, even if it leads to a certain departure from the course of reforms.

Currently in China, the government controls and regulates up to 30% of the price of industrial, agricultural and consumer goods and services.

Norway.The country questions of prices and trade competition governed by the law of 1953 “On the control of prices, profits and restriction of competition”, as well as a number of royal resolutions issued on the basis of this law. The action of these documents is applicable to all commercial activities and all areas of business. The law prohibits any agreement on the establishment of the unjust (inflated) prices. The State has the right to issue mandatory for all provisions setting maximum and minimum prices, or “freeze” them. It regulates the procedure for calculating prices, discounts and allowances (extra charge), determines the maximum level of profit, terms of delivery and payment, as well as other options in the area of ​​pricing, revenues, trading conditions. In practice, this right is often used, for example,

The basis for the establishment of domestic prices in Norway are the world prices. Significant dependence of the Norwegian economy from external markets encourages the Government to implement policies to protect their own economy, in particular by monitoring the compliance levels and proportions of internal and external prices. If the import of goods leads to an undesirable change in the ratio of prices in the domestic market, the government may seek to restrict the importation of these products.

United States of America (USA).Accelerating the pace of growth of wholesale and retail prices in the US domestic market in the 1970s., Escalating moderate inflation galloping led to the need to resort to methods of direct price regulation.

The most ambitious experiment in price and wage regulation was implemented in the US administration of President Richard Nixon. In August 1971 the first time the centralized control of prices and wages was set in the postwar years. The difficult economic situation of the country and the pressure of public opinion forced the president to go to extreme measures – in the country for 90 days have been “frozen” prices and wages. In the current economic situation, the decline in inflation could cause an extremely painful consequences, in particular the increase in unemployment, while at the same time dominated by the view that inflation may be limited without reducing employment, if it is introduced price controls.

In a short period of direct regulation of prices contributed to a certain stabilization of the economy: in the autumn of 1972 to reduce inflation to 3% per year and the rate of price increases, increased slightly generating employment began to increase rapidly the gross national product. However revealed negative consequences of centralized regulation. Strict control over prices and wages limited the interbranch flow of capital, inhibited investment policy, and the increased inflationary pressures, reduced the level of business activity, inhibit the growth of income.

By 1974, the rate of inflation exceeded 10% per year, and in May of this year, the administration of President D. Ford gave up direct control over prices.

Attempts to direct price controls were made in subsequent years. They primarily affect the domestic price of energy, which, reflecting the increase in import prices of oil, petroleum products and natural gas grew in 1974-1981 gg. rapidly stimulating inflationary spiral.

Freezing the domestic wholesale price of oil, petroleum products and natural gas to curb the development of inflationary trends led to a number of negative consequences in the economy. Lack of investment in the energy industry, the lack of interest from mining corporations in the development of new oil and natural gas in view of monitoring the level of prices has led to the fact that crude oil imports to the United States, despite the increase in world prices, grew rapidly until 1981

When in 1981, President Ronald Reagan took office, inflation in the United States accounted for more than 13% per year – the highest in the postwar period. He immediately stopped the political game to the control of prices and wages. Consistently pursued monetary policy has reduced inflation, and generally in the 1980s. free from price controls were more stable.

In subsequent periods, the US administration, limiting public funding and direct price controls, has focused on the active use of market instruments and methods of indirect price control, contributing to the overall improvement of the economic climate in the country. This approach has a stabilizing effect on inflation in the United States.

Among the main areas of indirect price regulation are the following: restruktivnaya monetary policy, deficit regulation and discount rate the Federal Reserve Banks, the state budget, the system of federal purchases of goods and services, tax policy. Ultimately, all of these areas of the state of macroeconomic policies affect the change in supply and demand in the domestic market and thus to define the basic proportions of the exchange and the price level. Direct government price controls currently applied in the highly monopolized sectors within the jurisdiction of the antitrust regulation by the Ministry of Justice and the US Federal Trade Commission. Thus, the special commission set tariffs for the use of electricity and some communications services.

Special mention should be on the state regulation of prices of the agricultural products industry. The US government attaches great importance to the regulation of agricultural product prices, exercising indirect influence on the purchase price through a mortgage transaction, as well as the prices of commodities regulation, purchased by farmers. As part of federal farm programs, farmers, grain growers receive from the US Department of Agriculture loans to finance production. Harvest they can sell at market prices and pay for part of the loans proceeds. If market prices fall below the reference price set by Congress, the farmer can donate the harvest to the state at the reference price, paying for a loan and getting revenue.

Likewise regulated prices in the dairy industry. Congress defines “fair” level of the reference price of milk, butter, cheese. If market prices drop below this level, the government buys products and uses them for free breakfasts for schoolchildren, help the poor, food aid to underdeveloped countries, and also sells to other countries.

Legislative documents on agriculture, adopted in the US in 1985, made changes in American agricultural policy. The mortgage rates, which determine the volume of loans provided to farmers have been significantly reduced under these instruments. For wheat and coarse grain level of mortgage rates is currently 75-85% of the average market price over the previous five years. In this case, the Minister of Agriculture granted the right to reduce their levels by 20% in order to increase the competitiveness of American products in the world market. The State shall endeavor to maintain parity between the prices of agricultural products and goods purchased by farmers. In general, price controls Antitrust Department of the Ministry of Justice and the US Federal Trade Commission.

At the same time it should be noted that the regulated minimum prices of wheat, corn, rice, cotton, milk, meat and other products of the farm and the Program for the multibillion-dollar government subsidies to agriculture in general, are a source of huge losses.

The high prices of agricultural products lead to huge costs. The government was forced to buy millions of Tony this product, which is in the public repositories, and farmers are spending billions of dollars on energy and chemical fertilizers to grow crops that can be sold at a loss, if at all someone will get.

It is especially important to emphasize that the main instrument of US antitrust policy is and has always been the removal of artificial barriers to competition. This began with the Sherman Antitrust Act back in 1890, does not allow the government to regulate prices and limits their horizontal and vertical fixing. Its purpose is to prevent the formation of cartels, obstruction of restricting competition. An even more important role in curbing monopolies played the opening of US markets to international competition. The American market – it is a highly competitive field of battle.

Perhaps the only sector of the economy where the direct control is carried out as a tool for anti-monopoly policy rates – the so-called natural monopolies: the electricity production and delivery of natural gas through pipelines, communication services, etc. For those who regulate prices, it is extremely difficult to establish the “correct” price of products such as electricity. If prices are too low, the energy companies will lose interest in the renewal of equipment and build new facilities. As a result, supply of energy to the consumer in the required quantities is compromised. If prices are too high, there is a desire to invest in very expensive projects.

Due to the fact that price regulation as an instrument of antimonopoly policy led to such diverse results in the United States attempts to replace it where possible, market competition. Some industries that are treated as natural monopolies, since 1979 began to be exempted from price control. For example, it was canceled for internal control of oil and oil products prices.

The above examples are directed to stimulate the production of certain goods, social justice, the fight against monopoly.

It is particularly important to note that the conditions of independence of producers in the formation of natural and cost indicators in the US traced continuously strengthen the role of the government in making decisions on prices. Thus, the US government has legislated in the field of prices: 1) introducing a law on federal Trade Commission Act, the pricing of consumer goods; 2) establishes restrictions on prices, discriminating against individual members of distribution channels (law Ribonsona – Patman); 3) prohibits the sale of goods below cost (the Sherman Act – Clayton); 4) adopt standards of acceptable behavior in the exercise price of advertising.

With the strengthening of the role of government in the formation of prices is changing and the mechanism of innovation development. Without changing its economic content of the spontaneous market, he turns into adjustable-market, where the government has a regulating effect not only on price policy, as stated above, but also through fiscal policy (government funding) affects the development of the main directions of research -technical progress.

Total is currently in the US state is governed and controlled by up to 10% of the price of industrial, agricultural and consumer goods and services.

France. From the point of view of studying the experience of state regulation of prices in foreign countries is the most interesting example of France, which has long pursued a policy of “dirigisme” – a direct impact on market conditions, and especially the price.

In a market economy of this country acts in the basic principle of free formation and price fixing, but the state while conducting direct regulation of prices of agricultural products, electricity, gas, transport services, as well as control over prices in a competitive market.

It should be noted that the French economy the public sector takes a small share, and includes industry-monopolies (eg gas industry, electricity and transport), as well as individual industries working in the mode of market competition (eg, national and commercial banks, insurance companies and individual firms). For monopoly industries State sets all the economic parameters of activity, including the amount of investment, labor costs and prices of finished products, and on the economic activities of these separate branches of minimal impact, encouraging them to compete with the private sector.

For nearly 40 years (1947-1986 gg.) In France, which is one of the industrialized countries, there was a strict regime of state regulation of prices. The difficult economic situation in the country, to create by 1947, a sharp decline in the purchasing power of the French franc, it led to the devaluation of the need for decisive action to control prices.

At the end of 1947, taking account of the growth rates of the policy of “controlled price of freedom” was introduced the country’s economy, as a result of which the entrepreneurs were given the right to change prices, notifying the public authorities, which could undo such actions. However, in early 1948 the prices of goods have been transferred to the regime of full or partial freedom of establishment.

However, during the years 1949-1957. Government adopted six laws on locking in prices that led to a gradual tightening of price controls. Due to the negative socio-economic forecasts, the French government introduced a complete or partial blockage of output prices (of goods), and in subsequent years – in 1963, in 1975-1980.

In 1960-1962 gg. in the country it was carried out almost complete liberalization of prices of industrial goods. But since mid-1963 the government decided on a new lock in prices due to the new economic policy ( “development without inflation”). At the same time it was frozen prices of some food products and services. Thus, in the mid-1960s. According to experts, government regulation of prices in France, spread about 540 commodity groups and goods. For comparison, in the same period in some other countries of the European Economic Community (Germany, Italy, Belgium) is covered by the regulation nine to 27 product groups (mainly food).

From 1965 to 1972 state regulation of prices it was carried out through the so-called stability contracts, software contracts and contracts against rising prices.

According to the stability of States to conclude contracts with companies of the agreement, according to which they were entitled to raise the prices of some goods, while reducing the price of the other. The main purpose of such a mechanism of state regulation of prices – to maintain the stability of the overall level.

software contractsIt was designed to promote the evolution of prices, meet the conditions of international competition. This mechanism of state regulation of prices applies to all goods and services, which, in accordance with the contracts previously subjected to stability control. According to the program contracts of the enterprise represents the state information about their investment programs, financial situation, employment, the prospects on external markets, as well as detailed information on price formation, etc.

Contracts against price increasesThey were aimed at ensuring high competitiveness of French goods and a slowdown in inflation. At the conclusion of their businesses government pledged to take no action, leading to increased production costs.

In 1970-ies. the government began to re-apply the system of measures for blocking and price regulation. Thus, during the second half of 1975 have been temporarily blocked the prices of all goods and services to the public and private sectors of the economy, and in 1976, the prices in the public sector could only rise by a certain amount. The state contracts with companies, according to which the latter undertook to limit the growth of its product prices. If the profit of the company grew faster than the prices, they were subject to a special anti-inflation tax at progressively increasing scale.

Meanwhile, it gradually became clear that the system of strict control over prices with the principle of blocking exhausted. Analyzing our own experience, the French economists have come to the conclusion that such price controls makes the market less flexible, inhibits the growth of production and competition, at a certain stage restricts the free flow of capital, the mobility of labor, product and services.

Scientists have also noted the low efficiency of the price control in the fight against inflation: the rate of inflation in the mid-1970s. France (9-10% per year) were significantly higher than in countries where prices are regulated not by administrative and indirect methods.

In 1973 the French government liberalized the prices of manufactured goods, according to which the price lock was canceled in most sectors of the economy. To carry out the liberalization of the following sectors were selected: 1) in which there was quite a strong international competition (for example, watch and ball bearing industry); 2) which was not observed sharp jumps in prices (eg, dairy canning and confectionery industry due to the specifics of the goods produced); 3) thanks to which the social security system had stable market (e.g., pharmaceuticals).

During the first half of the 1980s. price liberalization process continued. By 1986, out of control was released more than 80% of industrial production prices.

French economists believe that the price liberalization positive results date. First, during the period of economically reasonable and prepared the liberalization of prices, inflation is not overstepped the permissible limits. Secondly, liberalization under developed a civilized market has led to a relative stabilization and even in some cases to lower prices of basic foodstuffs.

However, the liberalization of prices does not mean complete withdrawal of the state from the pricing process. The transition from full political interference in business management business (micro-level) to the global system of regulation (at macroeconomic level) for the French economy only means changing forms of interference from harsh methods to the indirect effects on the market and prices. It is no coincidence simultaneously with the decision on the liberalization of prices adopted a document about the price competition in the industry, which prohibits the establishment of any kind of producers associations, importers, wholesalers and retailers, as well as the conclusion of any agreement on minimum or recommended prices of industrial products, consumer goods and services.

Significant scale of state regulation of prices in France are associated with occurred in the postwar period of the coalition government with the participation of the Communists and representatives of large nationalized sector, lack of competitiveness on the world market and in need of state support.

For the normal functioning of the public sector and through it the Government’s economic and social policies, including by means of price regulation, require public financial resources. They are formed mainly through the development of the tax system. In France, there are about 120 types of taxes. At the same time the number in Germany reaches 70. If possible, provide financial support to enterprises France surpasses many larger countries (USA, Germany, Great Britain).

A similar ratio is observed in the area of ​​public expenditure. Wherein a substantial portion (about 16%) is sent directly to ensure the production process.

State regulation of prices by means of a wide range of tools and methods: a cost – through the ratio between supply and demand on the market; administrative – by direct modification or fix prices.

Economic regulation of prices – is the main method in the practice of the developed countries, as it does not disturb the market mechanism, maintains the economic feasibility of prices and their organic relationship with the world market prices.

Recently, in France the main focus of regulation of prices is their stabilization or decline in growth, which is achieved using a special emission, tax, financial and credit policies.

Issuing policy aimed at restricting the money supply in circulation. The same is valid policy of raising direct taxes from enterprises. It was carried out during the most severe inflation (end of 1960 – the beginning of the 1970s.) To reduce the state budget deficit by means of additional tax revenues.

As an anti-inflationary factors used in France in the post-war period, you can call credit benefits and public assistance to producers. These instruments have an impact on prices through production costs, profits, increase in production and sales. Tax incentives are used in the form of accelerated depreciation system, reduction of direct and indirect taxes. In the 1960- 1980 biennium. small and medium-sized companies received for the development of productive activities 50% discount from income taxes. During the most severe inflation, the French government pursued reduction in indirect taxes. So, the usual VAT rate was reduced from 23 to 20% in 1973, and in 1986 – to 17.6%.

Use of tax credit incentives and direct financial assistance helped to reduce the rate of growth of domestic prices. In some cases, these benefits have become a major factor in anti-inflation. Application in the 1970s. tax benefits was crucial to slowing inflation.

However, in some cases, the use of economic instruments, although it was aimed at fighting inflation, but did not cause the desired change in prices. Thus, the use from 1979-1982. wide system of privileges under the taxation does not reduce the high rate of inflation. At this time, opposing tax breaks factor was the increase in oil prices on the world market. To prevent the increase in domestic prices, the government was forced to apply not only economic but also administrative regulation of the pricing process.

The liberalization of prices in France has led to the need to change the structure of government bodies. Before 1986, as part of the planning and finance pricing departments of the Ministry were presented to an independent department. Then it was transformed into a department of the competition, which includes the rights of the department organs of state regulation of prices and price competition.

In France, there are about 3,000 government inspectors at prices that are employees of the department for state regulation of prices and price competition of the Department of Competition of the Ministry of Planning and Finance, line ministries, and 100 departments. The main tasks of state controllers – monitor the state price discipline. Supervisors have the right to be acts of violation of the rules of pricing and transfer them to finance the tribunal, which shall decide on the sanctions to legal persons who do not comply and breach of legislation on prices.

In modern conditions the Ministry of Planning and Finance of France: 1) predicts market conditions (in the short term, the next year, as well as 5, 10 and 15) and generates the appropriate recommendations to the government; 2) develop the state budget and monitors its implementation; 3) forms the volumes and structure of the public order; 4) develops state programs;

5) review and approve prices for the products of the monopoly and the first electric power industry, the gas industry and transport.

Currently, direct price regulation continues to apply to agricultural products, electricity, gas and transport services.

In general, in France the state regulates and controls about 20% of the price of industrial, agricultural and consumer goods and services.

Finland.In 1980-ies. this country called “Scandinavian Japan”, because it has reached a high level of economic development and has taken a leading position in the world in terms of population.

Although the Finnish economy relies mainly on private property and free enterprise, the state plays an important role as a regulator of economic development of the country and, in particular, the policy of setting prices.

The pricing policy of the State belong to important functions. Through the Ministry of Commerce carried out the planning and monitoring of food prices, grain, energy (especially gasoline), production of wine and spirits industry. A significant role played by the public sector in the lending business, which is focused on the sale of goods and services at prices that are affordable for the middle and lower strata of the population. Firms that organize the sale of goods at low prices, receive from the state credit for significant periods at low interest rates. In general, Finland pricing system is flexible and stimulating consumption, especially in the areas of retail prices and services. For example, in a cafe or a restaurant the price of an entire portion of the more than half not twice, but only by 25-30%, creating an interest in consumption.

The same can be said about the prices of hotel services. On the first day they are usually more expensive by 50-60%. If the stay is longer than one day, and you use laundry or dry cleaning services, the prices of these services are reduced exponentially. Significantly differentiated prices in the shops for shoppers categories: almost half the price of the goods purchased by the members of the Company – the founder of the store.

As a rule, before the Christmas and New Year due to the high demand for traditional gifts of their price increases, and after Christmas the same goods are sold at a discount of up to 70%. This is explained by the need for rapid distribution of goods, because the rental of storage facilities is very expensive.

The socially oriented Finnish economy through price and tax regulation is provided by a series of events aimed at raising the living standards of the population. A good example is trading in vegetables, fruits, citrus. In this northern country all year round there is a fairly wide range of products at low prices. The state encourages trade fortified foods, without taxing their importation into the country, and in some northern areas are also available for the implementation of incentives.

Almost all national programs for the most important economic sectors in Finland are based on the planning and settlement pricing as market pricing effectively regulates only the current needs of society. To understand the long-term global challenges of economic development, technological progress, the need to respond flexibly to market conditions and effective interaction with the production and consumption of the price system, allowing to stimulate and monitor the development of the progressive structure of the industry. Taking into account the long-term planning, forecasting, government regulation and price controls solved the problem of further development of the national economy.

Total is currently in Finland, the state regulates and controls up to 40% of the prices of agricultural and consumer goods and services.

Sweden. For the country is characterized by a mixed economy, which is based on market relations on a competitive basis with the active use of government regulation, including price. Of particular interest is the experience of the state regulation of prices in Sweden.

It is important to note that the monitoring and control of prices carried out by government control of prices and competition, subordinated to the Ministry of Civil Affairs.

There are special offices, exercising control over the prices in all the provinces of Sweden.

The main goals of the post-war economic policy in Sweden were maintaining economic equilibrium and to achieve an acceptable price stability along with high employment, rapid economic growth, and income equality.

In 1956 a law was passed on the general regulation of prices, and since 1975 a National Council on prices and competition. This body shall ensure the collection and systematization of information for the analysis and forecasting price indices, the development of measures to curb their skyrocketing. Information about the causes and factors of price changes are communicated to the public and entrepreneurs, which provides visibility of market changes.

However, in recent years, direct government control is not actively used for prices, practically applied only indirect control measures. According to Swedish experts, the price freeze is only effective in the short run to restore the sharp disparities in the market and suppression of inflation bursts. The law on price regulation grants the right to carry out measures for the direct impact on the prices or in the event of war or danger of its occurrence or the threat of significant overall increase in prices. The law also provides the opportunity for the State to establish the maximum level of the prices of certain goods; enter the order in which price increases allowed only after a prior notice and justification for increasing the size. Crucial decisions on matters of state regulation of prices,

The impact on the price level through a state monopoly and state events. In Sweden, there is a state monopoly on wine and vodka products, email and some other types of telecommunications, postal services, pharmacy trade. Significantly affect the price of the state energy concern and the Swedish Railways.

A significant impact on prices have a political decision taken by the central government and local authorities. So important for the growth of the general level of consumer prices was the decision to change VAT rates for energy taxes, interest rates and exchange rates.

VAT increase on 1% entails raising the overall level of consumer prices by 0.7%, the change in the discount rate by 1% – 0.3%, the change of the crown rate of 1% – 0.2%. The latter means that the devaluation of the krona by 1% reduces the level of prices for the same ton 0.2%. These figures prove the importance of the state control not only for price increases in the private sector, but also in the application of different policy options.

Regulation of prices in agriculture carried out by the National Committee for the marketing of agricultural products of the farm prices agricultural market and the implementation of policies of “protecting” domestic production from imports. This regulation is carried out on some basic products (cereals, milk, meat, eggs and a number of other food and agricultural raw materials) through the establishment of guaranteed prices by the state, on which Swedish farmers can sell them to the state. Every year in the traditional negotiations between the government and the union of agricultural producers with the participation of representatives of consumers set the price level of food products. Protection of domestic production on imports provided by the application of customs duties on imports and subsidies for export of Swedish goods of the agricultural sector. The basic principles of the agricultural sector adjusting product prices developed by Parliament, on the basis of the common agricultural policy.

State-regulated price increases of agricultural products plays a crucial role for pricing in the retail trade. Among other factors affecting the retail price, it is possible to allocate situation on the market a variety of products, the level of costs in the food industry, the VAT rate. Retail prices are approximately 40% of consumed products in Sweden are not regulated, since they determine the other factors, in particular the level of import prices.

In the last decade in the retail food trade it became widely used a new method of competition – a temporary decline in prices, known as the system of additional price. There coordinated action as trade and food industry, which is reflected in the use of price discounts in the sale of industrial goods trade enterprises. Items included in additional price, have a special price sticker red.

Information about the additional costs and a list of relevant products is published in daily newspapers. Additional costs substantially reduce the cost to consumers. Approximately 30% of all products sold in stores at a reduced price, which is especially characteristic of meat products (almost 90% of all sausages sold at an additional cost). In such cases, the usual price becomes a fiction, ie, hardly used in practice.

Special sphere of pricing – is the formation of housing prices. Given their extremely high level of government provides the public housing subsidies and loans.

Sweden held the indexation of income of the population, taking into account rising prices (once a year). Taking into account the price index of goods included in the minimum consumer basket. However, the indexation of income is limited. In fact, it is considered to be a measure conducive to “embedding” of inflation in the pricing mechanism. Indexing takes place only in separate agreements lasting character, as well as in contracts of employment and housing facilities. Form of indexation of income is to determine the basic amounts used for the annual pension accrual. When calculating the basic amount as reported on the year, consumer prices are taken into account.

The use of various forms of control over the pricing process depends on the economic situation and price movements. Very important it is to limit the share of wages that companies have the right to carry on prices. Thus, in recent years it has ranged between 40-60%. Naturally, the introduction of such restrictions affect the possibility of increasing salaries.

In modern conditions of economic development in the state of Sweden is regulated and controlled by up to 40% of the price of industrial, agricultural and consumer goods and services.

Japan.Experience of price regulation in this country is of great interest for the study.

In the postwar period (August 1945), Japan experienced a collapse in prices and wages. During this period, Japan’s Ministry of Finance intends to abolish the existing control over the prices of goods, but the continuation of control over them insisted the High Command of the allied forces because there were serious imbalances in the economy. Inflation averaged 77% per month due to the growth of money supply and government spending.

The Government has outlined a series of compromise measures. It published a program that has become a real step towards the normalization of the economic situation and included the freezing of bank deposits, establishment of a new property tax, the introduction of a new system of fixed prices.

In accordance with this program, all deposits were frozen, only allowed to exchange old banknotes of 100 yen on a new sample bills, salary limited to 500 yen per month. The prices of all products have been tied to the prices of rice, coal, and the level of wages. The last three parameters are set by government order. Fixed prices of products for industrial needs exceed the prices of consumer goods. producer subsidies were established that increased government spending and led to an excess supply of money. These measures have laid the foundation for the development of approaches to public management of economic processes.

Committee of economic stabilization Japan has formulated three basic ways to restore the national economy:

  • increase in the production of industrial purpose core product lines;
  • restriction of purchasing power as a result of fiscal and financial measures;
  • optimization of the structure of commodity production.

However, the stabilization program failed in 1946. Prices continued to rise. In June 1947, the Committee decided to raise the fixed prices and the establishment of state control over resource allocation. A list of priority products has been expanded. Manufacturers whose costs exceed the fixed price, received subsidies. The gap between fixed and market prices declined. But further uncontrolled growth of wages again strengthened inflationary tendencies. Supreme Commander for the Allied forces insisted on the introduction to the May 1948 strict control of wages. The country’s ruling circles inflamed debate between supporters of the shock therapy and slow stabilization. Since the end of the 1940s. Japan began conducting stabilization policy in the financial sphere.

The third revision of the fixed price and wage stabilization program refers to August 1948 – March 1949, when it was introduced a fixed exchange rate (. 300 yen per US $ 1), and the price structure close to the US. The supreme command of the allied forces has proposed the following principles of anti-inflationary policies and indirect regulation of salaries:

  • Subsidies are strictly limited to the size of public funds;
  • subsidies for enterprises to increase wages, prohibited;
  • excess of wages above the level of inflation is prohibited.

As a result of the measures of inflation fell. From April 1949 to July 1952 is characterized by the liberalization of prices and the conduct of stabilization policy. It was cut subsidies to balance the state budget, introduced strict control over the money supply, has established a unified exchange rate of 360 yen per US $ 1.. Again the scale of fixed prices was increased with a view to abolishing controls on them and the introduction of free market principles. Since the beginning of 1949 the market prices began to fall, it was abolished rationing. The Korean War (1950) has had a stimulating effect on the Japanese economy. In March 1952, Japan finally abandoned price controls.

Financial stability in the country can not be called orthodox, as combined with traditional stabilization control and planning measures, which allowed relatively in a short time at the same time to restore the industry and to ensure the stability of the economy.

The stabilization policy, focused on economic growth, an important role was played by the system of fixed prices and reproduction of normal pricing structure that provides undistorted guidelines for the development of industries.

As a part of the main characteristics of the post-war reform can distinguish pricing mechanism and strict control of financial institutions. Bank of Japan power over financial institutions has increased as a result of: the direct and indirect control over the loans based on the relevant legislation; high degree depending on the finance industry; tough debt control.

The financial system has been focused on the development of basic industries and long-term goals. Building a financial system defines the tasks of the transition period. Chief among them was to overcome the technological gap between Japan and the West. At the level of the financial system, this required the transition from short-term to long-term orientation of credit and from direct to indirect financing.

In the era of rapid economic growth in Japan’s financial system is still heavily controlled by the state, becoming a pure market system is only in the early 1980s.

State in Japan regulated by the basic consumer price of rice, wheat, meat and dairy products, railway tariffs, tariffs water and heating, electricity and gas, education and health care. Despite the fact that direct state intervention in the pricing of the minimum rate and is held to limit any form of price controls, the government still affects the price of certain goods in the interest of the leading industrial and trading companies, farmers and their associations.

Economic trends late XX – early XXI centuries. forced to reconsider many of the factors affecting the level and dynamics of consumer prices. As a result, there are new ways and methods of use of state capacity. For example, a price cartel – the most common and most difficult to overcome a form of monopoly – will be created mainly for market surveillance in order to establish and maintain high prices. However, in Japan, where acts antitrust, government authorities conducted an unusual share of small cartels, and then a large trading firms. This unexpected step was taken in order to implement the cartel through public policy in the area of ​​pricing, the control of the general installation on lowering prices.

Japan should not be installed as an unfair monopoly high and monopoly low prices, aims to “knock out” a competitor from the market. Imposed restrictive measures in respect of the simultaneous rise in prices. They apply to sectors where production exceeds 30 billion yen. If in such industries for more than two companies within three months, raised the price by about the same magnitude in absolute terms or as a percentage, of the fairness of the transaction, the Commission has the right to require them to report the reasons for the rise in prices and to launch an investigation if necessary. Exceptions are provided only in the event of a sharp deterioration in market conditions, when prices fall below cost and there is a threat of bankruptcy of a significant number of firms in the industry. With the permission of the Commission in such cases is allowed matching in output, sales, investment levels of utilization of equipment and price. When the Commission receives an application for authorization of such conclusions, it must in the short term to make public the reasons for its consent or refusal. Making a decision, it is obliged to consult with the Minister, within the competence of which includes this sector.

In Japan, pricing issues are handled by a government body – the Bureau of Economic planning control prices. Its functions include the control over observance of the antimonopoly legislation, the level of monitoring and commodities prices dynamics, maintaining the required level of demand, the study of supply and demand trends.

In addition, the Bureau of macroeconomic forecasts of price movements, develops proposals on pricing in the country, provides opinions on the proposals of line ministries at the lowest price levels. And although the main postulate of its activities, as well as all state regulation, is the impact on production costs, the organ is acting behalf of the government directly controls the prices of almost every commodity group. Exercise such control on the basis of contracts with producers. control principle is to establish upper and lower limits of the price. Their choice is linked with both used in a given period of government economic and social policies, and with prices on world markets dynamics.

In modern conditions of economic development in Japan, the government regulated and supervised up to 20% of the price of industrial, agricultural and consumer goods and services.

Mansur Tangishov, financier expert

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