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 presence of foreign-invested firms, either wholly foreign-owned or Sino-foreign joint ventures, intensified the competition in China's domestic market, improved the efficiency of the economy, and propelled state-owned enterprise (SOE) reform and China's transition to a market-oriented economy.
Despite the challenges of reconciling the socialist state and market-oriented economy, closing the large regional income gap, and alleviating the high non-performing asset problem, China will manage to grow faster than the Indian economy--which will also grow fast--until it reaches a per capita income level of, say, $4,000-$5,000.
Agency for International Development (USAID) has focused the Cash Transfer Program in Egypt on supporting economic reform activities to move Egypt toward a more liberal and market-oriented economy.
Saw Maung took over the military government in 1988 and his ''State Law and Order Restoration Council'' abolished the 1974 Socialist Constitution and declared a freer, market-oriented economy.
Peretz is directing his campaign at Israelis who believe they have lost out in the move to a more market-oriented economy.
While those who have visited the country in recent years can confirm major shifts towards a market-oriented economy, we should be equally quick to caution others who express sentiments that parallel those of the Gold Rush Days in California.
governments enacted a series of reforms to establish a more market-oriented economy, closer to the American model and further away from its Western European competitors.
The outlook revision reflects growing progress on structural reform that is rapidly laying the foundations of a more market-oriented economy less reliant on government spending to maintain gross domestic product (GDP) growth,'' Joydeep Mukherji, director at S&P's sovereign ratings group, said in a statement.
She also said assistance projects promoted by seven Japan Centers in Russia, established through the committee to help Russia promote a market-oriented economy, will also be continued through the ministry.
As the country cranked up its manufacturing base and developed a more market-oriented economy, many business people--scrap recyclers included--attempted to capitalize on this growth trend.
Frenkel (7) provides a similar point and contends that Israel's market-oriented economy is "incompatible" with those of Arab nations in the region.
The market-oriented economy brought a dramatic revolution to the Chinese employment system, which affects nearly the entire population in all urban areas of China.