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What are the different view points about the role of the government in an economy?

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01/29/2017

Economists and political scientists frequently assess how strong or weak a government should be in terms of playing a role in any nation's economy. Views on this subject differ vastly and governments alter their participation in economic affairs and regulations based on the condition an economy may find itself. In western style democracies, there is a consensus that a government should not play a major role in an economy, unless there is a dire need to do so, such as in a major recession. On an ongoing basis most nations' central banking systems do regulate or influence interest rates and the overall money supply. Also, in any nation or economic situation, experts and government leaders quite often have different views on this topic.In certain nations such as the Peoples Republic of China, the leading members of the Communist Party make economic decisions.