Posted by: Captain Haddock June 13, 2008
The End of Free Trade As We Know It??
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Interesting second article there. As the article implies, protectionism is not a sustainable answer to commodity inflation. Some governments are bound to try it as a short term measure, but in the long run, most goverments cant resist market forces and hold on to such policies for a long time. This is not the first time governments have tried such a measure, and it wont be the last. If you look at India's past there have been plenty of times when they have tried it but in the end they have had to relent either because supply increased (as a result of farmers feeling the incentive to produce more as a result of the increase in price)  or, as the panic died down, demand decreased .



Last edited: 13-Jun-08 12:50 PM
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