In a free market, prices act as efficient #signals, guiding resource allocation and production decisions based on supply and demand.
Government intervention or increases in the money supply distort these signals, leading to misallocation of resources, distorted incentives, and market imbalances.
Subsidies, price controls, or inflation caused by monetary expansion disrupt the natural price mechanism, hindering market efficiency and innovation.
Allowing prices to adjust freely fosters a more responsive and dynamic economy, where resources are allocated efficiently to meet consumer preferences and promote sustainable growth.