market economy

[ mahr-kit i-kon-uh-mee ]

noun

1. a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.

market economy

1. An economy in which the greater part of production, distribution , and exchange is controlled by individuals and privately owned corporations rather than by the government, and in which government interference in the market is minimal. Although a total market economy is probably only theoretically possible (because it would exclude taxation and regulation of any kind), capitalist economies approximate it and socialist economies are antithetical to it ( see capitalism and socialism ). Market economies are also called free economies, free markets , or free enterprise systems.

Word History and Origins

Origin of market economy¹

First recorded in 1915–20

Example Sentences

When considering a president's influence on the economy, it's important to recognize that we have a market economy, said Michael Walden, a Reynolds Distinguished Professor Emeritus at North Carolina State University.

From Salon

"We are finally seeing investments and wages rising, and we have a chance to go back to a normal market economy," he says.

From BBC

Clean hydrogen is enormously expensive, with prices far too high to compete against fossil fuels in a competitive market economy.

From Los Angeles Times

"Despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops," the IMF said.

From BBC

“Global growth is marginally stronger on account of robust activity in the United States and in many emerging market economies,” Georgieva said.

From Seattle Times