Friday, January 15, 2010

Paul Krugman said "government should typically leave markets alone"

"Careful study of how markets work has led microeconomists to the conclusion that government should typically leave markets alone. Except in certain well-defined cases, government intervention in markets usually leaves society as a whole worse off. There are, to be sure, important tasks for microeconomic policy-ensuring that markets perform well and intervening appropriately in the well-defined cases in which markets don't work well. But the area of microeconomics, in general, suggests a limited role for government intervention."

Page 141 of Macroeconomics by Paul Krugman and Robin Wells

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