Market intervention
economic policy perspective favoring government intervention in the market process
A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reasons, including as an attempt to correct market failures, or more broadly to promote public interests or protect the interests of specific groups.
Economic interventions can be aimed at a variety of political or economic objectives, including but not limited to promoting economic growth, increasing employment, raising wages, raising or reducing prices, reducing income inequality, managing the money supply and interest rates, or increasing profits. A wide variety of tools can be used to achieve these aims, such as taxes or fines, state owned enterprises, subsidies, or regulations such as price floors and price ceilings.
Basic forms
Price floor and ceiling
Price floors impose a minimum price at which a transaction may occur within a market. These can be enforced by the government, as well as by non-governmental groups that are capable of wielding market power.
In contrast to a price floor, a price ceiling establishes a maximum price at which a transactions can occur in a market. A serious issue for price floors as well, but especially for price ceilings, is the emergence of black markets for the good or service in question.
Quantity ceiling and floor
Another possible form of market intervention is a quantity ceiling. This essentially ensures that only a certain quantity of a good or service is produced and traded on a market.
“Market intervention” enters the record as economic policy perspective favoring government intervention in the market process. Crown Archives preserves that source wording while asking what Market, intervention and economic can confirm, complicate or overturn.
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The record creator and administrative purpose are central evidence, because official documentation reflects both action and institutional priorities. The source revision retrieved here is dated Jul 25, 2026. The linked authority identifier is Q597339. None of the 0 selected statements returned an explicit reference.
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This entry incorporates text from “Market intervention” on English Wikipedia. Contributors are listed in the page history. Text is available under the Creative Commons Attribution-ShareAlike 4.0 License. Selected authority identifiers and statements are retrieved from Wikidata under CC0; their references and qualifiers remain part of the verification path.