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 failed, "forgotten" men and women of the market economy thus created the last in a series of narratives that made the "chance to strive" a national goal and a moral imperative.
On this point, Meadowcroft seems to abandon his brave defense of the market economy in the search of some more intelligent way of structuring the welfare state we are all living in.
But eliminating favoritism of all kinds is not necessary to the proper functioning of a market economy in the global context.
In a separate report carried by The People's Daily on November 18, 2005, a spokesperson for China's Ministry of Commerce was quoted as thanking the Republic of Korea for its recognition of China as a market economy.
Under the auspices of this program, scientists and managers from camps and environmental centers travel to Seacamp for periods of three to four months to learn how to operate successful camp programs with a marine science focus in a market economy.
The United States formally recognized this achievement when, in March of this year, it accorded Kazakhstan the status of a market economy, and these reforms yielded the following impressive results at home in Kazakhstan:
John Paul II's encyclical Centesimus Annus defends the market economy as the source of wealth and well-being for people.
The result is a Bastard Metropolis [C] where planners "harness their Communist strivings to the successes of the (socialist) market economy, offering development without urbanity .
Under Yeltsin, steps toward a market economy based on private property and competition were minimal and haphazard, while oligarchs who had managed to personally privatize a chunk of the Soviet state's assets had free rein to give capitalism a bad name.
Russian President Vladimir Putin's 17 years as KGB agent in East Germany were not great training for creating the framework for a market economy.
Japan welcomes plans by Laos to convert to a market economy, Foreign Minister Yohei Kono indicated to Laotian Deputy Prime Minister and Foreign Minister Somsavat Lengsavat on Friday, Japanese officials said.
Some left critics have even argued that charity, by alleviating the worst excesses of poverty, has served the masters of the market economy by forestalling revolution.