Market Intervention

Market intervention refers to actions taken by governments or authorities to influence the economy, particularly specific markets, to promote stability or achieve economic goals. This can include measures like setting price controls, providing subsidies, or directly buying or selling goods to prevent extreme price fluctuations or supply shortages. The aim is to protect consumers and producers, ensure fair competition, and maintain economic stability. Such interventions are used when market forces alone do not lead to desirable outcomes, helping to prevent negative effects like inflation, unemployment, or market collapse.