intervene

Examples of intervene in the following topics:

• Why Governments Intervene In Markets

  • Governments intervene in markets to address inefficiency.
  • Governments intervene to ensure those resources are not depleted.
  • Governments may also intervene in markets to promote general economic fairness .
  • Welfare programs are one way governments intervene in markets.
  • Identify reasons why the government might choose to intervene in markets.

• Government Intervention May Fix Inefficient Markets

  • Governments can intervene to make a market more efficient when a market failure, such as externalities or asymmetric information, exists.
  • But when society is adversely affected by economic inefficiency, such as when a monopoly firm raises prices to a point where people cannot afford a basic good, the government will sometimes intervene.
  • In this case, governments can intervene by taxing the transaction and using the money to negate the harmful effects or to compensate those affected by the negative externality.

• Managed Float

  • Almost all currencies are managed since central banks or governments intervene to influence the value of their currencies.
  • A country can obtain the benefits of a free floating system but still has the option to intervene and minimize the risks associated with a free floating currency.
  • If a currency's value increases or decreases too rapidly, the central bank can intervene and minimize any harmful effects that might result from the radical fluctuation.
  • The rupee is allowed to fluctuate with the market within a set range before the central bank will intervene.

• Introduction to the Role of the Government in the Economy

  • Indeed, one enduring theme of recent American economic history has been a continuous debate about when, and how extensively, government should intervene in business affairs.

• Introduction to How the U.S. Economy Works

  • If the pure capitalism described by Marx ever existed, it has long since disappeared, as governments in the United States and many other countries have intervened in their economies to limit concentrations of power and address many of the social problems associated with unchecked private commercial interests.

• The American Dollar and the World Economy

  • They did this by intervening in foreign exchange markets.
  • Economists call the resulting system a "managed float regime," meaning that even though exchange rates for most currencies float, central banks still intervene to prevent sharp changes.
  • Eventually, a country that intervenes to support its currency may deplete its international reserves, making it unable to continue buttressing the currency and potentially leaving it unable to meet its international obligations.

• Mixed Economies

  • Different ways a government directly intervenes in an economy include:

• Introduction to Monetary Policy

  • Alternatively, the monetary authority could intervene in order to increase aggregate demand and close the output gap.

• Investing in Research and Development

  • It can also directly intervene and encourage or discourage research and development in a specific area of interest to the government or society that is not currently being addressed by the market.

• Causes of Market Failure

  • When a market fails, the government usually intervenes depending on the reason for the failure.