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.
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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/