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 ?
By engaging in a trade war with China, imposing steel tariffs on Brazil, and taking a tough line on NAFTA, the Trump Administration seems to be unconcerned about the economic fallout from those policies for systemically important emerging market economies such as Brazil, China, and Mexico.
The ascent of emerging market economies, however, is a relatively new development, which started to accelerate only in 2005.
The next section addresses the encompassing institutional reforms of emerging market economies in Central and Eastern Europe that, after the collapse of communism in 1989, took the effort to implement a full-fledged market economy.
The IMF has been discussing a plan to reform its governance in a move that will give more power to emerging market economies in Asia and elsewhere.
China (NME) duties were over 20 percentage points higher than those applied to market economies, on average.
Michael Leahy, assistant director, will assume oversight responsibilities of the Advanced Foreign Economies and Emerging Market Economies sections.
As these countries adopt market institutions many of their problems are similar to problems in other emerging market economies. It is, therefore, valuable to compare and contrast the experience in the former centrally-planned economies with the experience in other emerging market economies.
This is true both in the so-called developing world and in those nations making the transition from socialism to market economies, though in different ways.
The first presents a theoretical overview of the two models of capitalism that Deeg uses as ideal types, coordinated and liberal market economies, and the arguments as to why globalization should be causing a convergence of the two.
The planet has groaned with wars and massacres for a century as a result....The irony is that modern market economies are almost certainly much fairer than the feudal regimes they replaced."
16 with key developing and emerging market economies to discuss ways of stabilizing global financial markets, a spokesman for the German Finance Ministry said Tuesday.
As a possible first step to more direct exchanges, BOK Governor Chon Chol Hwan has been reported as telling journalists covering the central bank that he will try to send officials from his bank to join an education program for North Korean bank officials on market economies to be offered by China's central bank.