Non-intervention Policy(10分)

Non-intervention policy means that the government will not intervene in the market and let the 'invisible hand' to guide the economy. For example: the stock price of a particular company now is $100 per share. People will buy the stock if they think the price is justificable. Thus, stock price will go up. On the contrary, if people feel that the stock price is too high and overvalue the fundamental value, they will stop buying that stock or start selling it, the price will go down. However, government will not neither buy nor sell that stock and will let the market players find the intrinsic price. That's policy is what we called non-intervention policy.