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 ?
Certainly, the free-market economy is not the only economic system in the world.
Still, at least measured in terms of spending, the bulk of research and development activity seems to have become routine and this makes it far easier to analyze, and to spell out its role in the free-market economy.
Like the rest of Eastern Europe, Bulgaria suffered during its transition to a free-market economy. During the Soviet era, it received raw material from Russia and was home to the largest paper mill in the communist block.
Having a free-market economy is a predetermined affair and not subject to any political discussions.
There is more to American democracy than a free-market economy and the dream of material success.
Its natural relationship to West Germany should also make its transition to a free-market economy a bit easier than that confronting others in the Eastern Bloc.
Nonetheless, since the last-minute rejection of the 'fiscal policy' by Prime Minister Recep Tayyip Erdoy-an two years ago, which was considered a necessity by Babacan, we feel that there are two opposing approaches to the economy in the government: On one side, Babacan and Finance Minister Mehmet E[currency]imE-ek, supported by the economic bureaucracy, defend an economic policy approach in line with the rules of a free-market economy integrated with the world economy, and on the other side we see others such as Minister of Economy Zafer Ecay-layan defending a more pragmatic, one might say "populist," approach.
* How would such a move affect investors in these companies, American consumers, and our free-market economy? Would government control stifle the entrepreneurial spirit that drives the U.S.
In Mexico, many state-owned health clinics will be operating in more of a free-market economy, according to EGADE's Alonso Gomez.
He called the Sandinistas "worthy and able opponents" and said they showed "respect for the institutions of democracy." Ortega promised to continue working for national reconciliation and for a free-market economy from within the National Assembly for his Sandinista party, which retains a solid core of support in Nicaragua.