Why financial markets fail
Why financial markets fail
Financial markets allocate savings and credit between households, firms and governments. Market failure occurs when this allocation is inefficient, causing resources to be misallocated and creating costs for consumers, firms or taxpayers.
Step-by-step lessons on Edexcel A A Level Economics 4.4.2 Market failure in the financial sector. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.