Market Distortion and Transfinancial Economics
Though there may be some market distortion in Transfinancial Economics it can be dealt with compensation used in an intelligent but acceptable way. R.S. Market Distortion: Definition, Causes, and Examples By WILL KENTON Updated January 25, 2025 Reviewed by MICHAEL J BOYLE Fact checked by VIKKI VELASQUEZ Juhari Muhade / Getty Images/Article referenece Investopedia DEFINITION Market distortion refers to any interference that significantly affects prices or market behavior, often caused by government regulations, subsidies, taxes, tariffs, or monopolies. Free-market purists view market distortion as any situation in which prices are determined by something other than the unfettered forces of supply and demand. Truly free markets are scarce by that definition. In a more practical sense, market distortion means any interference that significantly affects prices and, in some cases, risk-taking and asset allocation. Governments are the sourc...