ABSTRACT
Foreign exchange markets are very close to the market model. Within countries there are efforts to manage the national money, usually via central banks. That intervention is known as monetary policy, which in its modern form assumes a market society. While the market model is at the heart of analyzing the individual units of the economy, Keynes’s revisions address the attributes of the total economy. Most people may not recognize that the accounting method for the Gross Domestic Product is based on the market model. Many negative consequences of economic activity, such as depletion of natural resources and degradation of the environment, are outside of conventional market pricing. Protectionism and trade policy in general would not even be an issue if the world were one big global market without national boundaries. International financial markets provide what is probably the best real-life, contemporary example of the free market at work.
