Market intervention

Source: Wikipedia, the free encyclopedia.

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
  • Patents
    are 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]
  • Welfare is government support to individuals, in cash or in kind, often directed at basic needs

Levies

  • Bank levies
    are when banks are required to give one-off payments to governments
  • Capital levies
    require 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

  1. ^ 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.
  2. . Retrieved 29 March 2024.
  3. . Retrieved 29 March 2024.
  4. . Retrieved 29 March 2024.