market economy

noun

Definition of market economy

: an economy in which most goods and services are produced and distributed through free markets

Examples of market economy in a Sentence

Recent Examples on the Web

Targeted Chinese stimulus for infrastructure projects is lifting prices for raw materials and oil prices are rising, backstopping emerging market economies that rely on sales of raw materials for growth. Julie Wernau, WSJ, "Papua New Guinea Breaks Bond-Market Jinx," 27 Sep. 2018 The demise of the Soviet Union in 1991 prompted a surge of big international players into Russia, eager to take advantage of the massive privatization drive as the country tried to build a market economy. Georgi Kantchev, WSJ, "Russian Lawyers Find Lucrative Niche Counseling Clients Hit by Sanctions," 15 Dec. 2018 But the arrangement left out emerging-market economies, many of which want a greater say in how these international institutions are run. Josh Zumbrun, WSJ, "U.S. Contemplates Appointing First Female President of World Bank," 24 Jan. 2019 The elite around Kim have enjoyed sharp increases in their standards of living as a market economy has flourished, but this has not been shared by the general populace. Anna Fifield, Washington Post, "Kim returns to North Korea as Trump lavishes praise," 12 June 2018 Hard to believe now, but Russia’s leadership wanted to use shock therapy after the collapse of the Soviet Union to create a market economy and align closely with the West. Jon Talton, The Seattle Times, "‘It’s the economy, stupid,’ and the bad luck of George H.W. Bush," 4 Dec. 2018 Image Should a deal emerge from the Trump-Kim meeting on June 12 in Singapore, China is ready to extend its dominance over the North’s small and decrepit economy, where signs of an emerging market economy are also strengthening China’s hand. Jane Perlez, New York Times, "A Trump-Kim Deal Could Send China’s Trade With North Korea Soaring," 5 June 2018 The dollar’s recent rise has showed signs of stalling, relieving some of the pressure on emerging-market economies and multinational corporations. Amrith Ramkumar, WSJ, "U.S. Stocks Take the Global Lead," 16 Sep. 2018 Denmark has quite a free-market economy, apart from its welfare state transfers and high government consumption. Matthew Yglesias, Vox, "Kevin Williamson’s unhinged attack on Elizabeth Warren’s corporate accountability bill, explained," 17 Aug. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'market economy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of market economy

1929, in the meaning defined above

Keep scrolling for more

Learn More about market economy

Statistics for market economy

Last Updated

21 Mar 2019

Look-up Popularity

Time Traveler for market economy

The first known use of market economy was in 1929

See more words from the same year

Keep scrolling for more

More Definitions for market economy

market economy

noun

Financial Definition of market economy

What It Is

A market economy is structured to allow market forces to determine prices with little or no government involvement.

How It Works

In theory, a market economy's functions are based on fluctuations in supply and demand for specific goods and services across an entire market. This relationship results in market prices that efficiently distribute goods and services among market participants who are willing and able to pay for them. Regulations by government are theoretically unnecessary, since market forces shift supply and demand and signal price adjustments conducive for efficient exchange of goods and services. Capitalism in its purest form exists in a market economy.

Why It Matters

Most developed industrial economies are a hybrid of market economies and government oversight. Fiscal and economic policies are implemented to protect the less fortunate and sustain overall well-being, include minimum wage laws, social insurance programs and subsidized health care.

Source: Investing Answers

market economy

noun

English Language Learners Definition of market economy

: an economic system in which prices are based on competition among private businesses and not controlled by a government

More from Merriam-Webster on market economy

Britannica.com: Encyclopedia article about market economy

Comments on market economy

What made you want to look up market economy? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

likely to have or produce good results

Get Word of the Day daily email!

Test Your Vocabulary

Words from Greek and Latin Quiz

  • roman forum
  • Which of the following months comes from a Latin word for “ten”?
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!

TAKE THE QUIZ
Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!