Institute for Public Policy Research MAKING MARKETS IN PRACTICE - Sam Alvis, George Dibb,

We need to counter the entrenched view that government is innately bad at things, and instead, with the right information, capabilities, and an understanding of the tools at its disposal, be a supportive and active partner to the private sector, workers, and their trade unions. [...] This was also part of the European tradition of industrial policy (Grabas and Nützenadel 2014), with the French and Italian indicative industrial planning, or the British sectoral mergers of the late 1960s. [...] If the market price rises above the so-called strike price, then the generator pays the excess to the state, but if the market price falls below the strike price, then the generator is reimbursed. [...] A combination of these elements will result in change in the structure, and in both the absolute and relative size of the example markets in the centre. [...] Examples of wider economic conditions include barriers to trade, political instability, the fiscal outlook of the domestic economy, the skills and labour available, functioning and reliable infrastructure, and the depth of capital markets.