Tag Archives | Role of Government

Role of the Government in a Market Economy | Economics

In this article we will discuss about the role of the government in a market economy. The classical economists like Adam Smith, J.S. Say and other advocated the doctrine of laissez faire which means non- intervention of the government in economic matters. Adam Smith introduced the concept of the invisible hand, which refers to the free functioning of the price [...]

By |2017-01-13T05:55:15+05:30January 13, 2017|Government|Comments Off on Role of the Government in a Market Economy | Economics

Role of Government and Exchange Rate

For managing the exchange rate the government has to buy or sell foreign exchange as and when needed. This is known as intervention. For example, the US government on a particular day might buy $1 billion worth of US dollar with British pounds. This would cause a rise in value, or an appreciation of the dollar. Here the US government [...]

By |2016-05-16T07:46:38+05:30May 16, 2016|Exchange Rate|Comments Off on Role of Government and Exchange Rate
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