market economy

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Market Economy

A social and economic system in which prices are fixed by the law of supply and demand rather than by a government or other body. In its pure form, a market economy is an economy absent of government subsidies, incentives, or regulations. A market economy contrasts with both a planned economy and a mixed economy. No economy is a complete market economy: most countries claiming to have market economies in fact have a market economy combined with greater or lesser government regulation, sometimes called a social market. Proponents of a market economy argue that it is more efficient than any alternatives, promotes fair competition between its participants, and rewards skill and hard work. Critics allege that a market economy perpetuates class differences and rewards ruthlessness over actual labor. Milton Friedman, Friedrich Hayek, and Ludwig von Mises were three major 20th-century proponents of the market economy. See also: Capitalism, socialism, John Maynard Keynes.

market economy

see PRIVATE-ENTERPRISE ECONOMY.
References in periodicals archive ?
The only ideology that matters for the IMF is the free market economy.
She underlined the importance of the floating currency regime, the independency of the central bank and the sustainable public finance for a healthy competitive free market economy, adding that the Central Bank played a key role since 2001 in the success of monetary policies in Turkey.
The vision of the Society: "In this way we will attain a crisis-free free market economy in peace and freedom, with much more economic and social prosperity, as well as a concept for the preservation of our planet.
First, Gallup asked Russians if they feel the creation of a free market economy, largely free from state control, is right or wrong for the country's future.
That may be in theory, but in practice a free market economy, presupposes and demands absolute integrity of all those engaged.
But Rawls does not require work to be a basic right, nor does he require the government to have a full employment policy or set a minimum wage standard because these would interfere with the functioning of a more or less free market economy.
By telling many small stories, the authors describe how the big story played out: the USA became a superpower in a relatively short time, built in part by a free market economy and rapid assimilation of new technologies, increasing freedom for many who had not thought they could get it even while they struggled for it to the point of death, and the accumulation of power, whether economic, social, political, or spiritual.
ARENA, El Salvador's ruling party, has secured the peace in the country, returned it to a free market economy, rebuilt key portions of El Salvador's infrastructure damaged by the 12-year civil war, and is quickly overcoming the effects of the 2001 earthquakes.
The grant called for American organizations to host former Soviet Union scientists and managers from different industries and educate them how to conduct business in a free market economy.
For Gauvreau, the important outcome of this search is to allow the city to exploit opportunities they have not thought of before, and to embrace the dynamic character of the free market economy.
This is the time for city officials to emulate their neighbors and put their faith in the free market economy, while creating a healthy business climate that provides both good jobs as well as low-priced goods.
While business fluctuations are normal in a free market economy, a general downturn reflects a "cluster of errors" in which all, or most, businesses make bad investment decisions and suffer corresponding losses.