New government intervention theory

Author: Chen Dongqi
Publisher:
Publish Date: 2000-02-01
Features: Why, how, in what scope, and in what way does the government intervene in the economy? This book provides a systematic analysis in nine chapters. Chapters 1 and 2 focus on the strengths and weaknesses of government in economic regulation, discussing why modern market economies require government, the need for macroeconomic regulation and direct influence in certain areas, and proposing that the role of government is limited—we cannot assign it too many functions, nor can it overintervene in the economy. Chapter 3 addresses how to determine the size of the government itself and how to conduct institutional reforms when the government becomes too large. Chapters 4 to 8 rigorously examine the functions of the government, including formulating market plans, supervising their implementation, punishing violations; effectively regulating macroeconomic activities; improving the skills and efficiency of macroeconomic regulation through reasonable policy combinations and intervention methods; appropriately participating in direct production activities, primarily the production of public goods, while withdrawing from the production of "private goods"; enhancing the efficiency of foreign economic management; and establishing a clean, diligent, pragmatic, and efficient government through institutional innovation and standardizing civil servant behavior. Chapter 9 is a case study on government intervention, using South Korea as an example, further emphasizing that modern market economies cannot do without government intervention, but this intervention must be measured and targeted. Both "non-intervention" and "over-intervention" will incur heavy costs.