IT WILL BE A LONG TIME before we can say with any confidence whether
the introduction of direct controls on wages and prices has been followed
by a significant slowdown in their rise. Some good months and some bad
months have occurred under the controls, just as good months and bad
months occurred prior to their institution. I expect some slowdown in the
inflation, but that will not settle the question, for the cause may be the controls
or simply the delayed effect of the considerable slack in the economy.
This will be a subject of debate in the coming years, just as there was a
long debate over whether the investment tax credit actually stimulated
investment.
