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 ?
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 came from behind to oust Peres, acting party chairman and vice-prime minister, after a campaign that he focused towards Israelis who believe they have lost out in moves towards 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.
Vietnam will be coaxed into reforming its economy towards a market-oriented economy.
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.
In other words, "efforts for promoting democratization and the introduction of a market-oriented economy, as well as efforts to secure basic human rights and freedoms" turned to be major principles for the new Japanese ODA policy, as then Prime Minister Kaifu announced in the guidelines for future ODA in April 1991.
The paper illustrates the development of and relationship among various consumer laws that are to protect consumers in the market-oriented economy and explains their implications for firms that are doing business in China.