Regrettably, price controls don’t stop with just goods, commodities, and services. The United States, Europe, and Japan have been doing their darnedest during the early years of the 21st century to show that these ghosts of the old Eastern Bloc also haunt credit.
Remember, credit, like a commodity or good, has a price attached to it. The price of credit is the rate of interest a lender charges to a borrower. Like fixing the price of a commodity or good by a central planning authority, fixing the price of credit by a central bank – such as the Federal Reserve, European Central Bank, or Bank of Japan – is presently also being shown to be an utter failure.