3.3 Markets and the Exercise of Economic Power

3.3.1      Economic Regulations

3.3.2      Supply and Demand for Materials, Goods and Services

3.3.3      The Labour Market   Supply and Demand for Workers, and the Impact of Productivity   The Strength of an Employee’s Bargaining Position   Minimum Wage Policies

3.3.4      Financial Markets   Investment Risk and Interest Rates   The Exploitative Aspect of the Financial Services Industry   Price Bubbles and the 2007-8 Financial Crisis   Measures to Reduce the Impact of Financial Instability   The Power of Lenders

3.3.5      Deviations from the Classical Economic Model

3.3.6      Government Control of Markets

3.3.7      Tactical Political Manipulation of Economic Power   Tactical Intervention to Support an Industry or Region   International Economic Inducements and Sanctions

3.3.8      Macroeconomic Management and the Role of Central Banks   Managing Government Spending, Taxation and Borrowing   Responding to the Economic Cycle with a Stimulus   Inflation   Balance of Trade and Currency Exchange Rates

3.3.9      Economic Pressures on Governments   A Government’s Need to Deliver Economic Satisfaction   The Difficulty of Assigning Economic Responsibility