Government intervention
Definition: When the state interferes with the working of an individual market e.g. through price controls.
Related glossary term: ...
Government intervention - May be able to rectify various failings of the market. Government intervention in the market can be used to achieve various economic objectives which may not be best achieved by the market.
GOVERNMENT INTERVENTION: Actions on the part of government that affect economic activity, resource allocation, and especially the voluntary decisions made through normal market exchanges.
Government intervention in food and fiber commodity markets began long ago. The classic case of farm subsidy through trade barriers is the English Corn Laws, which for centuries regulated the import and export of grain in Great Britain and Ireland.
government intervention corrects market failures and maximizes social welfare.
Government intervention to set an artificially high price through the use of a price floor designed to aid producers.
Price takers ...
Despite government interventions in the economy, or ever perhaps because of them, the commonly heard phrase even now is that things are 'likely to get worse before they get better.' It really is not dependent on who the President is or what he does.
Without Government intervention or support from the Central Bank, this spiral of contagion can cause the bank to go bankrupt. The financial panic then may spread throughout the banking system.
A form of government intervention in the economy in which a government agency uses its law-making power to regulate the prices at which otherwise voluntary private exchanges may take place.
Price support
Government intervention to set an artificially high price through the use of a price floor designed to aid producers.
Price takers
Individuals who respond to rates and prices by acting as though prices have no influence on them.
A policy of minimum government intervention in the operation of the economy.
Related Terms:
Cash flow from operations ...
laissez-faire The concept that an economic system should be driven by free market forces, in contrast to government intervention. LAK The ISO currency code for the Laos New Kip. Learn more about Laos and the Laos Kip at GoCurrency.
Capitalism is grounded in the concept of free enterprise, which argues that government intervention in the economy should be restricted and that a free market, based on supply and demand, will ultimately maximize consumer welfare.
They have on occasion been through nearly disastrous periods (such as the Great depression), and some have argued that it has only been government intervention that has prevented capitalist economies from collapsing.
The new Keynesian economic philosophy (the theory by John Maynard Keynes, perhaps the most important figure in the history of economics, that active government intervention is the best way to assure economic growth and stability) stressed the ...
A program of selective government interventions designed to change the sectoral composition of a country's economy by influencing the development of particular industries or sectors.
Experience during the war demonstrated the possibility of successful Government intervention in industrial disputes through mediation. Even voluntary arbitration was resorted to only in a few instances.
A last will and testament ensures that your estate will be managed according to your wishes, and will circumvent family squabbles and government intervention in your personal business.
A comprehensive mobilization of technology, capital, and skilled labor involving direct or indirect government intervention in the marketplace in support of a specific industry.
It was strongly opposed to Marxism and, more broadly, to the use of economic theories to justify government intervention in the economy. Prominent members included Friedrich hayek, Joseph schumpeter and Ludwig von Mises.
Keynesian economics advocates government intervention, or demand-side management of the economy, to smooth out the bumps in business cycles and achieve full employment and stable prices.
Keynesian Economics - An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.
government intervention. In principle, economists consider free trade to be desirable
for maximizing overall economic efficiency.
While most developed nations today could be classified as having mixed economies, they are often said to have market economies because they allow market forces to drive most of their activities, typically engaging in government intervention only to ...
The TGLP was one of many government interventions that resulted from the determination by the U.S. Treasury and Federal Reserve that the severe systemic risk warranted unprecedented action.
These governed prices are the result of government intervention in the market through price adjustments or supply restrictions, including protectionist policies.
On non-tariff issues, the agreement established new international commitments concerning government intervention in aircraft, aircraft component and simulator procurement, ...
Keynes believed that active government intervention in the marketplace was the only method of ensuring economic growth and stability.
Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. Free reserves Excess reserves minus member bank borrowings at the Fed.
The risk associated with government intervention (does not include central bank intervention). Examples are legal and political events such as war, or civil unrest.
Coupon ...
Mixed economies rely primarily on the price system for their economic organization but use a variety of government interventions (such as taxes, spending, and regulation) to handle macroeconomic instability and market failures.
Keynesian economics An economic theory of British economist, John Maynard Keynes that active government intervention is necessary to ensure economic growth and stability. "Kick it out" Used in the context of general equities.
An economic theory of British economist, John Maynard Keynes that active government intervention is necessary to ensure economic growth and stability.
"Kick it out" ...
Dirty float
A currency that floats in value in terms of other currencies but is not free of government intervention. Governments intervene to "smooth" or "manage" fluctuations or to maintain desired exchange rates.
An exchange rate system characterized by the absence of government intervention. Also known as clean float.
Free on board ...
Keynesian economics is the theory of macroeconomics developed by the British Economist John Maynard Keynes. Keynesian economics admits a larger scope for government intervention in the economy than do most other approaches.
Known misstatement ...
Economic policy developed by British economist John Maynard Keynes who proposed that active government intervention in the market was the only method of ensuring economic growth and prosperity. See also monetarism.
Know Your Client Rule (KYC) ...
Laissez-faire - A term associated with the free enterprise economic system which calls for minimal government intervention or regulation, except in maintenance of this economic freedom.
 See also: Intervention, Banks, Expense, Equilibrium, Compensation
  
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