Economic regulation and economic promotion include state measures to maintain market balance and to avoid disruptions in economic processes.

Important elements of state market regulation are:

  • Taxes and duties for companies and households,
  • Subsidies and financial aid,
  • Pricing in the form of maximum and minimum prices.

Government economic regulation

The aim of government economic regulation and economic development is to ensure efficient economic processes. In addition, the aim is to avoid undesirable developments in the market economy. The state must observe the requirements of overall economic equilibrium.

In actual economic life, conflicts arise in the realization of economic policy goals. Typical manifestations of these conflicts are high unemployment, low economic growth, economic downturns, and environmental pollution from the manufacturing economy.