# Market failure

- Canonical URL: https://www.gerhardmerk.de/market-failure
- Post ID: 594545
- Modified: 2023-07-25T21:01:45+00:00
- Language: en

## Definition

A scarce good - in terms of the financial market: money - is not allocated to the best host: it does not get to where it will achieve the highest productive use (the situation where a market does not efficiently allocate resources to achieve the best possible result). - In a broad public, especially in Germany, the opinion is widespread that market failure is inevitable, especially in the financial sector; even that all transactions on the financial market sooner or later inevitably, with their inherent necessity, lead to chaos. Therefore, politics has to regulate the financial market in a very special way. Behind this is ultimately the false belief in the feasibility of economic processes and outcomes by politics and administration (political feasibility; feasibility = here; the ability to settle any plan straightforwardly, appropriately and successfully). - See market, perfect, market forces, demand-side financing, net welfare loss, productivity, regulatory frenzy, Wall Street-Main Street hypothesis, overregulation, competition, target zones. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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