market economy

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Related to Market economies: Emerging Market Economies, Command economies, Mixed economies

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 ?
As impressive as the superior economic growth performance of the emerging market economies in recent years has been, even more impressive has been their relative public finance performance.
Hence it was generally assumed that what have been called "coordinated market economies," even when the coordination is effected primarily by and through business itself, are more successful than "liberal market economies" where coordination is achieved through the market.
In Tokyo, an international financial source said Friday the the non-G-7 group will include key emerging market economies such as Brazil, China, Mexico, Russia, South Korea, and possibly Indonesia.
One roughly can assume that in market economies, M equals M*.
The current sorry state of affairs in Italy perhaps best illustrates how the line of distinction between large emerging market economies and developed market economies is becoming increasingly blurred.
Doubtless at the head of the list is reinforcing the capabilities of banking supervision in emerging market economies.
The moves these countries are taking toward stronger market economies will result in benefits to the people of Latin America, and Peru is positioning itself to participate in this new economic environment.
He has also been active in the work of the International Monetary Fund and The World Bank aimed at reform of the financial and banking systems of emerging market economies, and has wide expertise in global banking and payment systems.
Edlund believes accountants familiar with the global market have an important role to play in helping Eastern European countries convert to market economies.
Further, they are highly unlikely to do so in the future since they almost universally regard the IMF as a lending agency exclusively for the troubled emerging market economies with which they would hardly want to be compared.
Among her extensive economic and policy publications, she has authored three books and co-authored seven others, addressing such diverse subjects as economic development and competitiveness, international trade, education, employment, health care, and emerging market economies in central Europe and Asia.
The struggles of the former communist states to build political democracies and market economies seem both more intense and less likely to succeed.