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Below are actions that can be taken to tame the market. Associate each of them with the reason why it can be beneficial. I I.
Below are actions that can be taken to tame the market. Associate each of them with the reason why it can be beneficial. I I. I. To prevent some firms to gain too much market power, and to reduce the aggregate risks associated with \"too big to fail" firms. To dampen speculative activity. To attracts local savers who understand the local economic situation better and may offer loans at tower rates in the local currency. To avoid asset bubbles and credit booms. To counter moral hazard 5. Stabilization of borrowing by the Central Bank ready to adjust the money supply. Market regulation, by identifying conflicts of interest and making agents responsible for losses further down the line. Breaking up private businesses that are too large Capital controls (Ex: Limits on capital mobility, limits on short selling, etc) Build local bond market {if it does not already exist)
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