Government mandating of prices

06-Nov-2017 02:53

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Communicating this inflation goal clearly helps keep longer-term inflation expectations firmly anchored, thereby fostering price stability and moderate long-term interest rates and enhancing the FOMC's ability to promote maximum employment.

The maximum level of employment is largely determined by nonmonetary factors that affect the structure and dynamics of the job market.

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As a result, the FOMC does not specify a fixed goal for maximum employment; rather, the FOMC's policy decisions must be informed by its members' assessments of the maximum level of employment, though such assessments are necessarily uncertain and subject to revision.A price floor can be set below the free-market equilibrium price.In the first graph at right, the dashed green line represents a price floor set below the free-market price. The government has mandated a minimum price, but the market already bears a higher price.That is – well, would have been in their Candy Land fantasy – a tremendous discount.

We were repeatedly, incessantly told that health insurance was a product millions of additional people desperately wanted to purchase – but didn’t because they couldn’t afford it.

Unlike some of its competitors, the company continues to offer its more than 100,000 members access to the same network of 20,000 providers throughout the metropolitan area as before.