By the end of 1986, however, the government allowed price increases to slow the overheated economy.
Some no longer allow price increases above inflation and are reducing or eliminating payments used to support research and education.
When he finally did allow price increases in the spring of 2001, the resulting incentives for conservation, falling natural gas prices, and the long-term contracts he negotiated stabilized the situation.
Stronger demand allows price increases at the pump that more than make up for the higher cost of crude.
Mr. Gabrielli said today that Petrobras would "alter prices as soon as possible" but that a recent surge in inflation might prevent the government from allowing any price increases for a while.
If there's no physical way to get a new supply of bottled water into some part of Houston, then allowing unrestrained price increases won't produce a larger supply.
That's a fair point, but it's also why price-gouging laws typically allow for price increases within a certain limited range, or allow higher prices where a higher transport or production cost can be documented.
"Our sales and profile have since surged, creating the sustainability to allow future price increases such as when we extend the range this summer," says Bauer.
This suggests either that there are diseconomies of scale, or that the size of the population demanding services allows prices to be increased.
What's more, the deal is written to allow a price increase of 3.5percentt per year.
The radical new dose of quantitative easing comes alongside tax breaks from the government aimed at encouraging firms to raise wages, in the hope that consumers will respond by increasing spending, and allow prices to rise, too.
