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Marketplaces for goods and services are defined by the existence of prices. In a market economy, the price is an important determinant for production and consumption. We analyze theories describing how private firms price their goods and how government activity affects those prices. This description of government pricing powers is done through the lens of Modern Money Theory so as to provide a detailed view of the current monetary system. Through exploring a series of fiscal policy options, this paper has shown government pricing power to be present and undertheorized. The resulting discussion is aimed at providing theoretical background for targeted government pricing powers in pursuit of the public purpose.
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Lane, Denton Penn, "Price is What You Pay: An Analysis of Government Pricing Power" (2022). Senior Projects Spring 2022. 237.
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