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 ?
Todays second final rule will improve FERCs monitoring of wholesale power markets by streamlining the way it collects certain data for market-based rate purposes, specifically collecting this information in a database.
Market-based sourcing is fundamentally different from the UDITPA approach in that it is customer-centric and focused on the location where the service is received rather than service provider-centric and focused on the location where the service is performed.
In fact, they seem to impair it a bit: Lags of the market-based core PCE do a better job of forecasting future core PCE than do lags of the core PCE itself.
The EP believes that market-based instruments cannot be limited to the ETS and that other schemas can be planed, such as establishing a carbon tax in exchange for a decrease in fossil energy subsidies.
And the interagency report provides such a market-based solution to the problem that targets manipulative behavior without impairing the liquidity of this important market.
Brendsel described how Freddie Mac uses market value information, rather than GAAP, in making day-to-day management and investment decisions and called market-based data "critical for a comprehensive analysis of financial strength," a finding not readily determinable from historical cost statements.
ESMA expects market-based finance to grow in the future driven by a strong potential for demand facilitated by a supportive policy environment and the limited ability of banks to finance the economy.
We reviewed how Medicaid payments for prescription drugs compared across selected states and how these states' Medicaid payments for prescription drugs compared to three market-based prices.
The development objective of Developing Market-Based Energy Efficiency Program Project is to support development and implementation of China~~~~s priority energy efficiency and environment programs, with a focus on improving the results measurement and verification system and developing market-based mechanisms.