The Measures Of Government Intervention Under Market Economy

The Measures of Government Intervention under Market Economy Since market economy was introduced, the theme on government intervention for economy has been paid close attention by economists and politicians. If we make a comprehensive view on economic models of most countries in the world, we can found that government intervention played an important role in economic development. Now China's economic system made a great transformation and faces varieties of challenges after the WTO's entry. Only does government implement proper intervention measures, can Chinese economy develop in a healthy way. In my view, the theories and practices of government intervention under market economy in western countries give China much useful and important references. We found that government policy instruments played a main role in the traditional economic intervention of China. Although the intervention measures with policy instruments made a certain achievements, the intervention measures produced a prodigious problem at discretion and had no effective restriction. After the China's WTO entry and deep involvement into economic globalization, the measures of government intervention will be changed from "policy system"into "legal system" Namely China should use legal system to restrict the behavior of government intervention. This is a new start for China's government to intervene market economy in appropriate horizon.