by SEYMOUR E. HARRIS
INFLATION control is one of the serious economic and political problems of Latin America. Price or inflation control assures an equitable distribution of goods in wartime. Moreover, any group which suffers from rising prices--because its income does not rise so rapidly as prices--becomes disgruntled, and therefore the group becomes a political liability. Price control is therefore necessary both on political and economic grounds. All groups will gain--even the business entrepreneur who, though he may temporarily gain through rising prices, would pay the bill in the later, inevitable period of collapse.
This chapter is divided into two parts: (1) some broad generalizations which apply more or less to all Latin American countries; (2) individual studies of five countries. In the latter the peculiar problems of each country are considered in detail. Some readers may wish to read only Part I and particular sections of Part II.
Inflation is a vital economic problem of common interest to the Americas. Inflationary forces have been at work on a hemispheric____________________