market economy

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Related to Market capitalism: market capitalisation, Free market economy

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 dominance of a prudently managed, state-controlled economy over the much-feared, but in fact hollow, economy of US belies all claims about the infallibility of free market capitalism. It is the sound economy of China that lends a helping hand to the US economy.
Unfortunately for market capitalism, the great crash of 2008 has greatly burnished state capitalism's credentials.
Laissez-faire or free market capitalism will not address these issues.
JEDDAH: While free market capitalism is thriving globally and bringing unprecedented prosperity to many, the reality is that half the world lives on two dollars a day or much less.
On the one hand, he notes that "[i]f the story of the past quarter of a century has a one-line plot summary, it is the rediscovery of the power of market capitalism." On the other hand, Dr.
Each month when I receive ColoradoBiz it becomes more and more obvious that the writers and editors of this magazine have no clue about business or free market capitalism.
Always lively, often fierce in writing, one of McCloskey's formulations of her thesis will have to stand for numerous others: [I]t's not the case that market capitalism requires or generates loveless people [or people who lack other virtues].
Profit with Honor: The New Stage of Market Capitalism. By Daniel Yankelovich.
The "American dream" stresses individualism and free market capitalism, but allows minimum social support for failure.
It strives for a new order--a combination of free market capitalism with a social consciousness.
This is the goal of free market capitalism or globalisation, to give it its fancy name, and only happens in what used to be called the Third World.
But the problem is that both market capitalism and state socialism appear unable to nurture the kind of democracy and freedom he affirms.