The Fluctuation Of Market Price And Role Of Government Intervention

The market price is the main feature of the market economy. However, our country is currently in the primary stage of socialism and transition period from planned economy to market economy. It is difficult for our government to ignore the market price completely because the development of the market and the legal system are not perfect, that is to say, the government is supposed to involve the market price properly. Nevertheless, being faced with the price increase of consumer goods nationwide since May 2007, the relevant government departments have been at a loss. Some government departments interfered with the market price arbitrarily as they did during the planned economy period. Others seemed to pay no attention to price fluctuations without taking any measures and allow the market to go itself. In short, for the abnormal and excessive market price fluctuations, the interference of the relevant government departments is not standard at all.As far as the functional division of the Legal Department is concerned, coordinating the relationship between market regulation and governmental interference is one of the basic tasks of Economic Law. From the perspective of the Economic Law, it is of practical significance to Chinese transition because it proposes reasonable standards and principles for government intervention, especially price intervention on the operation of the market , and it standardizes the behavior of government interference with the market price appropriately.Based on the Chinese social background of economic transformation and the "synchronic" characteristic, this thesis places great emphasis on the relationship between the government and the market, especially the government interference with the market price. It attempts to put forward a basic framework in order to normalize the behavior of government interruptions in the market price.Therefore, firstly, the paper makes a comprehensive statement in terms of price turbulence of Lanzhou beef noodle and raises the elementary material for this thesis. Meanwhile, the part simply generalizes the national price increase in recent days and some measures of intervention taken by relevant government departments. It shows that price fluctuations are universal as government intervention is necessary. The next, the paper extracts the special relation of China's government and the market from the idea of economic law and economic transition period and the specific analysis is given. Then the article investigates the properness and irrationalness which stakeholders stand during the events of price-limited beef noodle. Finally, the article suggests a basic structure to standardize the behavior of government intervention in the market price. It is expected to have a beneficial influence on the government intervention in the economy, especially the price intervention.