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 ?
Lastly, because of a wider base of domestic consumers, low private debt and being not dependent on a single export, the country is poised to have a stronger market-based economy. It may just be a matter of time that the poor technical situation of the market will soon be broken by the play of its own strong fundamentals.
Kazakhstan has transformed itself rapidly from a Communist system to a market-based economy. Spectacular advances have positioned Kazakhstan as the best economic performer among the FSU states.
The 468-page report had six broad recommendations for Beijing: strengthen a market-based economy, foster innovation, go "green," provide social security for all, improve the fiscal system and seek mutually beneficial relations with the world.
The FJP-led government's main challenge, then, is to reassure investors and entrepreneurs of its commitment to a market-based economy, while fulfilling its commitment to relieve poverty through charity and social programs while eradicating the corruption that has soured Egypt's economy and vilified the market economy in the eyes of Egyptian citizens.
His economic policy actions, which implemented the restructuring of the Polish economy from a planned type to a market-based economy, were dramatic.
Thus, I presume that IP protection has a stronger effect in a market-based economy than in a coordinated economy:
The International Monetary Fund has urged Syria to quicken its transition to a market-based economy while reducing its dependence on the oil industry.
We'll show them what a real market is all about, not those speculative, money-grubbing markets, but a market for the people," said Chavez in his drive to change Venezuela from a market-based economy to a socialist one.
As a result, to be eligible for the bills benefits a country must demonstrate that it is making continual progress toward establishing the rule of law, political pluralism, the right to due process and a market-based economy that protects private property rights.
Furthermore, the study offers insights for countries that have not yet completed their transition to a market-based economy. Haselmann's work will therefore be of interest both to researchers and practitioners in the banking sector and regulatory government agencies.
It also urges Beijing to shift to a more open society and a market-based economy, and promote greater respect for human rights.
Raul's address comes as analysts look for signs whether Cuba is shifting towards a market-based economy after more than half a century of being under a command economy.