<P> In the early 1970s, inflation had been much higher than in previous decades, getting above 6% briefly in 1970 and persisting above 4% in 1971 . U.S. President Richard Nixon imposed price controls on August 15, 1971 . This was a move widely applauded by the public and a number of Keynesian economists . The 90 - day freeze was unprecedented in peacetime, but such drastic measures were thought necessary . Also motivating the controls, on the same date that the controls were imposed, 15 August 1971, Nixon also suspended the convertibility of the dollar into gold, which was the beginning of the end of the Bretton Woods system of international currency management established after World War II . It was quite well known at the time that this would likely lead to an immediate inflationary impulse (essentially because the subsequent depreciation of the dollar would boost the demand for exports and increase the cost of imports). The controls aimed to stop that impulse . The fact that the election of 1972 was on the horizon likely contributed to both Nixon's application of controls and his ending of the convertibility of the dollar . </P> <P> The 90 - day freeze became nearly 1,000 days of measures known as Phases One, Two, Three, and Four, ending in 1973 . In these phases, the controls were applied almost entirely to the biggest corporations and labor unions, which were seen as having price - setting power . However, 93% of requested price increases were granted and seen as necessary to meet costs . With such monopoly power, some economists saw controls as possibly working effectively (though they are usually skeptical on the issue of controls). Because controls of this sort can calm inflationary expectations, this was seen as a serious blow against stagflation . </P> <P> The first wave of controls were successful at curbing inflation temporarily while the administration used expansionary fiscal and monetary policies . However, the long - term effects proved to be destabilizing . Left unsuppressed after the initial price controls were relaxed, the overly expansionary policies proceeded to exacerbate inflationary pressures . Meat also began disappearing from grocery store shelves and Americans protested wage controls that didn't allow wages to keep up with inflation . </P> <P> Since that time, the U.S. government has not imposed maximum prices on consumer items or labor (although the cap on oil and natural gas prices persisted for years after 1973). During times of high inflation, controls have been called for; in 1980 during unprecedented inflation, BusinessWeek editorialized in favor of semi-permanent wage and price controls . </P>

Which prime minister introduced mandatory price and wage controls in the market