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PAD-81-02 1 (1980-12-10)

handle is hein.gao/gaobabbht0001 and id is 1 raw text is: 

BY THE COMPTROLLER GENERAL



Report To The Congress


OF THE UNITED STATES


The Voluntary Pay And Price Standards

Have Had No Discernible Effect

On Inflation


Since October 24, 1978, the Council on Wage
and Price Stability has developed and admin-
istered voluntary pay and price standards as
part of the anti-inflation program. When com-
bined with other anti-inflation tools, the wage-
price guidelines program was intended to have
a restraining influence on inflation. GAO,
however, found that the current program has
had no discernible effect on inflation since it
was instituted.

Despite efforts by the Council to improve on
past wage-price programs, problems remain in
designing the standards, implementing the
monitoring program, and administering the
enforcement effort.

GAO recommends that the Council refocus its
anti-inflation efforts by placing its highest
priority on long-run measures to promote
economic efficiency (in contrast to the short-
run standards program). The Congress should
reauthorize the Council and encourage the
Council to shift to longer-run anti-inflation
objectives.


      PAD-81-02
DECEMBER 10, 1980


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