Study Of Government Control In The Modern Market Economy

Regulation, as governmental intervention on the market, is a representative means to regulate micro economy in today' market economy. A theoretical understanding of regulation is gradually going deep. The current focus of dispute has already been diverted from whether we should adopt regulation to how to integrate regulation with market mechanism so as to fulfill economic efficiency. Regulation will not die. Deregulation, a loosening of regulation, is its main form of expression at present, with others, such as social regulation playing a more and more significant role.Regulation should be restricted to a reasonable extent. "Failure of market self-regulation" is the essential but not the adequate condition for government intervention. Even when "a market failure " is confirmed, whether regulation should be adopted depends on the cost of regulation. The purpose of regulation is to promote competition. Since the final balance of market is achieved by the enterprises under regulation and the consumers, such balance as a result of the regulation indicates the efficiency of resource distribution. Meanwhile the condition created to achieve a competitive market not only makes regulation practicable but also achieve the desired effect of a loosening regulation. Ever since 1970s many counties around the globe have conducted reforms of loosening regulation, which is now a widespread concern in regulation research. Reasons for deregulation are manifold, but the main reasons are a deeper understanding of regulation and the impact of technological advances. This paper present an introduction to the reforms of the regulation in the U. S. A and Japan and proposes the direction and means of regulation reform in China.