Market intervention
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Market interventions are measures that modify or interfere with the market, usually done by governments, but also by philanthropic and political-action groups.
Examples of market interventions[]
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Market interventions include:
- Bailouts pay (usually tax) money to people or organizations in financial difficulty; 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
- 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
- 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 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.
Categories:
- Economics