Europe’s energy market was not built for this crisis
It must be reformed without jettisoning what makes it work in normal times
Most people hate fluctuating prices. When they fall too far, they are seen to be threatening firms. When they rise too high, they are seen to be unjustly enriching them. But economists look at price movements and see the revelation of crucial information. The recent frenzy about interventions in European electricity markets is an especially brutal example of this age-old dynamic.
This article appeared in the Finance & economics section of the print edition under the headline “Power corrupts”
Finance & economics September 10th 2022
From the September 10th 2022 edition
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