Public Policy – How Governments Can Influence Markets
For better or worse, governments and the decisions they make will always have an impact on the economy and often influence markets. Taxes, monetary policy, industrial subsidies, and business regulation all play key roles in how the economy functions, and can even determine the success of individual businesses, or, in some cases, even entire industries. No government, even one replete with experienced economists with masters in public policy, can effectively control the economy of an entire country. The level of government involvement in the market varies by country; some governments exercise a firm hand, while others are more laissez-faire. With that said, it would be a grave mistake to underestimate the level of influence a government can exercise over the … Read more