Alex Tabarrok at Marginal Revolution has posted an excerpt from a recent article in The Economist regarding price controls on gasoline in Iraq. Currently prices are set by the government at around 1 cent per litre and, not surprising, lines at gas stations and shortages have ensued. I posted on the same topic last week but was relying on an article from nearly a year ago when the U.S. military (instead of the market) was setting the price of fuel. Due to the shortages and long lines I hypothesized that although the interim Iraqi government was now in charge, it didn't look like much had changed regarding the price controls. As this story out of Iraq makes clear, it hasn't.
Hat Tip: Thanks to The Econoclast for referring the link.
