Government Regulation of Markets
How does the Government Regulate Markets?
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What is Government Market Regulation?
Laws are generally made up of statutes, court interpretations, and administrative agency regulations. Government generally seek to regulate markets through a combination of these three.
To some extent, Governments always place regulations on private markets that control activity within the market. Think about the IRS and taxes or the SEC and securities.
Market-oriented economies are generally less-regulated that command economies. Though market-oriented economies (like the United States) can be subject to many regulations.
The objective of these regulations is to increase confidence in the market and ensure a semblance of equity or fairness in the market procedures.