Market intervention
It has been suggested that Economic interventionism be merged into this article. (Discuss) Proposed since February 2024. |
A market intervention is a policy or measure that modifies or interferes with a
market failures,[1] or more broadly to promote public interests or protect the interests of specific groups
.
Economic interventions can be aimed at a variety of political or economic objectives, including but not limited to promoting
.Examples of market interventions
Market interventions include:
- Bailouts pay (usually tax) money to people or organizations in financial difficulty;[2] bail-ins transfer organizations from the ownership of their former shareholders to that of their creditors, cancelling the debt.
- Competition laws aim to increase competition and prevent monopoly and oligopoly[3]
- Copyright is a legal monopoly granted on creative works
- Minimum wages legislatively limit the lowest pay level
- Monetary policy is manipulating the supply of money to attain economic goals; usually done by governments, as they are the ones that typically control currencies
- Nationalization transfers a privately held thing into government ownership
- Non-tariff barriers to trade restrict imports and exports by method other than direct taxes
- Patentsare legal monopolies granted on practical inventions
- Privatization transfers a government-held thing into private ownership
- Quantitative easing occurs when the government buys government bonds, raising their price and lowering the return per unit price to people and institutions buying government bonds.
- Regulation bans, limits, or requires some market activities
- Subsidies and market/government incentives pay money to produce some desired change in recipients[4]
- Cross subsidization and feebates are subsidies funded by a linked tax
- Welfare is government support to individuals, in cash or in kind, often directed at basic needs
Levies
- Bank leviesare when banks are required to give one-off payments to governments
- Capital leviesrequire people or institutions to pay a one-time taxlike payment, to the government or some institution the government wishes to support; often paid only if above a certain level of wealth
Taxes
Taxes are also market interventions.
References
- ^ Deardorff, Alan V. (2000-02-10). "The Economics of Government Market Intervention, and Its International Dimension" (PDF). RESEARCH SEMINAR IN INTERNATIONAL ECONOMICS. 1001. The University of Michigan School of Public Policy: 23. Retrieved 29 March 2024.
- . Retrieved 29 March 2024.
- . Retrieved 29 March 2024.
- doi:10.2307/1238882. Retrieved 29 March 2024.