The fair price (Latin iustum pretium) designates a price, which is formed according to ethical-normative criteria in the political economy. Early economists demanded a national definition of prices, so that these should counterbalance the work and expenditures for payments in advance.

History

Aristoteles was already concerned with a fair price formation. The fair price was later in the Scholastik coined/shaped by the Christianity of great importance, like that with Thomas's von Aquin and Albertus Magnus.

Today's meaning

The concept of the fair price is not practicably regarded today on broad front as - among other things because there is no objective possibility for the regulation one "„fair "“price. Today by the majority the market price principle is accepted, which leaves the price formation to the offer and the demand. If the market price deviates however too much from "„the felt "“fair price, then the policy reaches fiscal removability, a reduced value added tax, legal regulations also today still into the price formation in for example by national extra pay, such as en or requirements. In the case of the rising crude oil prices the German Federal Government reacted by the release of national stocks.

Rate of exchange adjustment

Of importance the concept is this very day in case of a rate of exchange adjustment. If the rate of exchange is fixed on political way (for example by a central bank or a government), then is to be clarified before the adjustment, to reach which rate of exchange helps best, the different political goals - thus the question about the fair rate of exchange arises.

Articles in category "Fair price"

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