The Government's Intervention and the Regulation of It

In a market economical system, the free market and the government's intervention serve as two basic factors to adjust the economy. Their relationships have long been heatedly argued in economics circles and the economic world. Market defects lead to market failures and thus the government's intervention is rationalized. But the government's intervention has its limitations and is not perfect. Given that the government's intervention in China's socialist market economic system fails to adapt to the development of the market economy, a statutory framework must be set up to afford protection for the market economy against the abuse of the government's intervention. So, it is necessary to regulate the government's intervention and effectively correct its mistakes. Since economic is called a law that interferes in the government, there is no doubt that the government's intervention should be regulated by it.