Politicians are not supposed to meddle with prices. Even though much of politics is about whether voters can afford things – especially in an era of recurring inflationary shocks – ever since the collapse of the Soviet Union’s planned economy four decades ago, the orthodoxy across much of the world has been that only markets should decide what things cost.

As the hugely influential Austrian economist Friedrich Hayek argued, in a complex modern society, information is too dispersed among potential sellers and buyers of goods or services for government to make informed and correct decisions about the prices of those goods. Hence, his disciples say, the inefficiency of state-run economies, from post-colonial Africa to the eastern bloc.

Yet as the 21st century has gone on, and market economies have proved ever less able to provide essentials such as energy and housing at an affordable cost – while also generating their own huge inefficiencies, such as soaring salaries for failing executives, and privatised utilities that don’t provide a functional service – so interest in the state regulating and even setting prices has started to grow again. Sudden bursts of inflation from wars, the pandemic and agriculture’s disruption by the climate crisis have prompted governments to make economic interventions that would until recently have been considered hopelessly old-fashioned, unnatural and even immoral. Even the Tories, one of the most stubbornly pro-market parties in the world, introduced the energy price cap, having previously called this Labour policy “Marxist”.

Few elected governments have survived long in the feverish climate created by this decade’s high prices. Inflation may have complex global........

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