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 ?
economy from the emerging market economies is its very size.
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.
Hence it was generally assumed that what have been called "coordinated market economies," even when the coordination is effected primarily by and through business itself, are more successful than "liberal market economies" where coordination is achieved through the market.
The gathering, the first of its kind, will bring together finance ministers from the G-7 countries -- Britain, Canada, France, Germany, Italy, Japan and the United States -- and 13 other countries, mostly emerging market economies, the spokesman said.
Eds) (1992), The Emergence of Market Economies in Eastern Europe, Blackwell, Cambridge, MA.
Alexeev does not give a quantitative comparison of the money stocks between CPEs and market economies.
The main reason for this is that the economies of Central and Eastern Europe are not (centrally) planned economies any more, but they are not market economies yet.
In part this reflects improved credit fundamentals in the emerging market economies, with upgrades outnumbering downgrades at Fitch by 3:1 since the Spring Review (published April 9, 2003).
The EBRD was set up in 1991 to support the development of the countries where it invests to market economies based on a strong private sector.
It is the continued dynamism of the major emerging market economies.
The articles generally suggest that the best way for companies operating in emerging market economies to find a distinctive and sustainable market position is to address what is unique and valuable in the economy itself.
Market economy status is important to China because exports from non-market economies (NMEs) are frequently slapped with higher antidumping duties than those from market economies.