The Suitability of Government Interventions on Markets in Modern Era

Chen Wen; Gao Ke

doi:doi:10.11648/j.ijebo.20210904.13

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The Suitability of Government Interventions on Markets in Modern Era

Chen Wen, Gao Ke

Published in International Journal of Economic Behavior and Organization (Volume 9, Issue 4)

Received: 5 October 2021 Accepted: 5 November 2021 Published: 12 November 2021

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Abstract

This paper discusses different types of economic policy. In recent years of economic unrest since the Great Recession of 2008 and 2009 to the current global virus outbreak crisis of COVID-19 pandemic, the public and academia raised the long-debated question again: should, and to what extent government should intervene the market. The major focus of this paper is on the use of regulatory policy, monetary policy, fiscal policy, and their applications in real world, with examples that spanned different time periods of time. The first part of the paper we will first explain the tree policies that government or central bank usually uses, which include the introduction of the specific tools each type of policy would use and discuss its benefits and shortcomings. In the next part of this paper, we discussed the various type of policy responses made by the US government and Federal Reserve during the COVID-19 era to illustrate how these policies discussed in this paper could be implemented to help the economy. In the last part of paper, we made the conclusion on the topic: even though government intervention sometimes distorts the market, but we believe the various kinds of policies are necessary to restore the normality of economy under turmoil time.

Published in	International Journal of Economic Behavior and Organization (Volume 9, Issue 4)
DOI	10.11648/j.ijebo.20210904.13
Page(s)	136-140
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Economic Policy, Regulatory Policy, Monetary Policy, Fiscal Policy

References

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[4]	Wang, William A. P and Clayton Munnings (2021):” Price Limits In A Tradeable Performance Standard” Working paper. http://www.nber.org/papers/w28368.
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[8]	Mattesini, Fabrizo, and Lorenza Rossi. “Monetary Policy and Automatic Stabilizers: The Role of Progressive Taxation.” Journal of Money, Credit and Banking, vol. 44, no. 5, Wiley, 2012, pp. 825–62, http://www.jstor.org/stable/23256555.
[9]	Hagedorn, M., I. Manovskii, and K. Mitman (2019): “The Fiscal Multiplier” Working paper. http://www.nber.org/papers/w25571.
[10]	Hausman, Joshua K., and Johannes F. Wieland. “Abenomics: Preliminary Analysis and Outlook.” Brookings Papers on Economic Activity, Brookings Institution Press, 2014, pp. 1–63, http://www.jstor.org/stable/23936270.
[11]	Dwyer, Jennifer Holt. “Explaining the Politicization of Monetary Policy in Japan.” Social Science Japan Journal, vol. 15, no. 2, Oxford University Press, 2012, pp. 179–200, http://www.jstor.org/stable/23260759.
[12]	Auerbach, Alan J., and William G. Gale. 2009. “Activist Fiscal Policy to Stabilize Economic Activity,” in Federal Reserve Bank of Kansas City, Financial Stability and Macroeconomic Policy, pp. 327-374.
[13]	Fornaro, Luca and Wolf, Martin and Wolf, Martin and Wolf, Martin and Wolf, Martin, COVID-19 Coronavirus and Macroeconomic Policy (March 2020). CEPR Discussion Paper No. DP14529, Available at SSRN: https://ssrn.com/abstract=3560337.
[14]	Terrie Louise Walmsley, Adam Rose & Dan Wei (2021) Impacts on the U.S. macroeconomy of mandatory business closures in response to the COVID-19 Pandemic, Applied Economics Letters, 28: 15, 1293-1300, DOI: 10.1080/13504851.2020.1809626.
[15]	Balmford, B., Annan, J. D., Hargreaves, J. C. et al. Cross-Country Comparisons of COVID-19: Policy, Politics and the Price of Life. Environ Resource Econ 76, 525–551 (2020). https://doi.org/10.1007/s10640-020-00466-5.
[16]	Loayza, Norman and Pennings, Steven Michael, Macroeconomic Policy in the Time of COVID-19: A Primer for Developing Countries (March 26, 2020). World Bank Research and Policy Briefs No. 147291, Available at SSRN: https://ssrn.com/abstract=3586636.

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Chen Wen, Gao Ke. (2021). The Suitability of Government Interventions on Markets in Modern Era. International Journal of Economic Behavior and Organization, 9(4), 136-140. https://doi.org/10.11648/j.ijebo.20210904.13

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ACS Style

Chen Wen; Gao Ke. The Suitability of Government Interventions on Markets in Modern Era. Int. J. Econ. Behav. Organ. 2021, 9(4), 136-140. doi: 10.11648/j.ijebo.20210904.13

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Chen Wen, Gao Ke. The Suitability of Government Interventions on Markets in Modern Era. Int J Econ Behav Organ. 2021;9(4):136-140. doi: 10.11648/j.ijebo.20210904.13

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@article{10.11648/j.ijebo.20210904.13,
  author = {Chen Wen and Gao Ke},
  title = {The Suitability of Government Interventions on Markets in Modern Era},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {9},
  number = {4},
  pages = {136-140},
  doi = {10.11648/j.ijebo.20210904.13},
  url = {https://doi.org/10.11648/j.ijebo.20210904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20210904.13},
  abstract = {This paper discusses different types of economic policy. In recent years of economic unrest since the Great Recession of 2008 and 2009 to the current global virus outbreak crisis of COVID-19 pandemic, the public and academia raised the long-debated question again: should, and to what extent government should intervene the market. The major focus of this paper is on the use of regulatory policy, monetary policy, fiscal policy, and their applications in real world, with examples that spanned different time periods of time. The first part of the paper we will first explain the tree policies that government or central bank usually uses, which include the introduction of the specific tools each type of policy would use and discuss its benefits and shortcomings. In the next part of this paper, we discussed the various type of policy responses made by the US government and Federal Reserve during the COVID-19 era to illustrate how these policies discussed in this paper could be implemented to help the economy. In the last part of paper, we made the conclusion on the topic: even though government intervention sometimes distorts the market, but we believe the various kinds of policies are necessary to restore the normality of economy under turmoil time.},
 year = {2021}
}

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TY  - JOUR
T1  - The Suitability of Government Interventions on Markets in Modern Era
AU  - Chen Wen
AU  - Gao Ke
Y1  - 2021/11/12
PY  - 2021
N1  - https://doi.org/10.11648/j.ijebo.20210904.13
DO  - 10.11648/j.ijebo.20210904.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 136
EP  - 140
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20210904.13
AB  - This paper discusses different types of economic policy. In recent years of economic unrest since the Great Recession of 2008 and 2009 to the current global virus outbreak crisis of COVID-19 pandemic, the public and academia raised the long-debated question again: should, and to what extent government should intervene the market. The major focus of this paper is on the use of regulatory policy, monetary policy, fiscal policy, and their applications in real world, with examples that spanned different time periods of time. The first part of the paper we will first explain the tree policies that government or central bank usually uses, which include the introduction of the specific tools each type of policy would use and discuss its benefits and shortcomings. In the next part of this paper, we discussed the various type of policy responses made by the US government and Federal Reserve during the COVID-19 era to illustrate how these policies discussed in this paper could be implemented to help the economy. In the last part of paper, we made the conclusion on the topic: even though government intervention sometimes distorts the market, but we believe the various kinds of policies are necessary to restore the normality of economy under turmoil time.
VL  - 9
IS  - 4
ER  -

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Author Information

Chen Wen

Olin Business School, Washington University in St. Louis, St. Louis, USA
Gao Ke

School of Economics, Beijing University, Beijing, China

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APA Style

Chen Wen, Gao Ke. (2021). The Suitability of Government Interventions on Markets in Modern Era. International Journal of Economic Behavior and Organization, 9(4), 136-140. https://doi.org/10.11648/j.ijebo.20210904.13

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ACS Style

Chen Wen; Gao Ke. The Suitability of Government Interventions on Markets in Modern Era. Int. J. Econ. Behav. Organ. 2021, 9(4), 136-140. doi: 10.11648/j.ijebo.20210904.13

Copy | Download

AMA Style

Chen Wen, Gao Ke. The Suitability of Government Interventions on Markets in Modern Era. Int J Econ Behav Organ. 2021;9(4):136-140. doi: 10.11648/j.ijebo.20210904.13

Copy | Download

@article{10.11648/j.ijebo.20210904.13,
  author = {Chen Wen and Gao Ke},
  title = {The Suitability of Government Interventions on Markets in Modern Era},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {9},
  number = {4},
  pages = {136-140},
  doi = {10.11648/j.ijebo.20210904.13},
  url = {https://doi.org/10.11648/j.ijebo.20210904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20210904.13},
  abstract = {This paper discusses different types of economic policy. In recent years of economic unrest since the Great Recession of 2008 and 2009 to the current global virus outbreak crisis of COVID-19 pandemic, the public and academia raised the long-debated question again: should, and to what extent government should intervene the market. The major focus of this paper is on the use of regulatory policy, monetary policy, fiscal policy, and their applications in real world, with examples that spanned different time periods of time. The first part of the paper we will first explain the tree policies that government or central bank usually uses, which include the introduction of the specific tools each type of policy would use and discuss its benefits and shortcomings. In the next part of this paper, we discussed the various type of policy responses made by the US government and Federal Reserve during the COVID-19 era to illustrate how these policies discussed in this paper could be implemented to help the economy. In the last part of paper, we made the conclusion on the topic: even though government intervention sometimes distorts the market, but we believe the various kinds of policies are necessary to restore the normality of economy under turmoil time.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - The Suitability of Government Interventions on Markets in Modern Era
AU  - Chen Wen
AU  - Gao Ke
Y1  - 2021/11/12
PY  - 2021
N1  - https://doi.org/10.11648/j.ijebo.20210904.13
DO  - 10.11648/j.ijebo.20210904.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 136
EP  - 140
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20210904.13
AB  - This paper discusses different types of economic policy. In recent years of economic unrest since the Great Recession of 2008 and 2009 to the current global virus outbreak crisis of COVID-19 pandemic, the public and academia raised the long-debated question again: should, and to what extent government should intervene the market. The major focus of this paper is on the use of regulatory policy, monetary policy, fiscal policy, and their applications in real world, with examples that spanned different time periods of time. The first part of the paper we will first explain the tree policies that government or central bank usually uses, which include the introduction of the specific tools each type of policy would use and discuss its benefits and shortcomings. In the next part of this paper, we discussed the various type of policy responses made by the US government and Federal Reserve during the COVID-19 era to illustrate how these policies discussed in this paper could be implemented to help the economy. In the last part of paper, we made the conclusion on the topic: even though government intervention sometimes distorts the market, but we believe the various kinds of policies are necessary to restore the normality of economy under turmoil time.
VL  - 9
IS  - 4
ER  -

Copy | Download