Wage-Price Controls: Where Do We Go from Here?

William Poole

WP

William Poole

THE ACCELERATION OF INFLATION since Phase II was replaced with
Phase III on January 11, 1973, has generated widespread concern. Unhappily,
it now seems likely, in my view, that controls at least as comprehensive
as those of Phase II will be reimposed, perhaps preceded by another
wage-price freeze. The nation cannot, however, return to Phase II; given
what has happened since August 15, 1971, the inevitable next step is a
Phase IV, even though its external form-the underlying legislation and
the administrative machinery-may closely resemble that of Phase I or
Phase II.