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Market intervention

A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reasons, including as an attempt to correct market failures,[1] or more broadly to promote public interests or protect the interests of specific groups.

This article is about interventions in markets and market economies. For an alternative to markets as an allocative mechanism, see planned economy.

Economic interventions can be aimed at a variety of political or economic objectives, including but not limited to promoting economic growth, increasing employment, raising wages, raising or reducing prices, reducing income inequality, managing the money supply and interest rates, or increasing profits. A wide variety of tools can be used to achieve these aims, such as taxes or fines, state owned enterprises, subsidies, or regulations such as price floors and price ceilings.

pay (usually tax) money to people or organizations in financial difficulty;[7] bail-ins transfer organizations from the ownership of their former shareholders to that of their creditors, cancelling the debt.

Bailouts

aim to increase competition and prevent monopoly and oligopoly[8]

Competition laws

grants a legal monopoly a creative work in order to encourage their production.[9]

Copyright

create a price floor on labour.[10]

Minimum wages

such as currency intervention on the foreign exchange market.[11]

Monetary policy

transfers a privately held thing into government ownership

Nationalization

restrict imports and exports by method other than direct taxes

Non-tariff barriers to trade

are legal monopolies granted on practical inventions

Patents

transfers a government-held thing into private ownership

Privatization

occurs when the government buys government bonds, raising their price and lowering the return per unit price to people and institutions buying government bonds.

Quantitative easing

bans, limits, or requires some market activities

Regulation

Subsidies

[12]

is government support to individuals, in cash or in kind, often directed at basic needs

Welfare

Market interventions include:

Command economy

Crowding out

Developmentalism

Development economics

Dirigisme

Indicative planning

Monetary policy

Palace economy

Regulatory economics

Rent-seeking

Social interventionism