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

The pursuit of market economy status has been a long-term strategic goal for China... James Freeman, WSJ, "Is China Finally Ready to Deal with Trump?," 18 June 2019 The situation is further aggravated by recent disappointments about the longed-for transformation to democracy and a market economy after 1990, which has changed nothing about the drifting apart of East and West, quite the contrary. Leonid Bershidsky, Twin Cities, "Leonid Bershidsky: Depopulation Is Eastern Germany’s curse," 18 June 2019 If producing more crops drove down farm prices and wrecked the land, well, that was just how the market economy worked. Kevin Baker, Harper's magazine, "Where Our New World Begins," 10 May 2019 Some of these legal tussles are part of the transition to a modern market economy. The Economist, "Disgruntled investors are losing patience with central Europe," 8 June 2019 The decline has been broadly felt, with all major advanced economies, including the U.S., and most major emerging-market economies seeing deterioration in their outlook. ... Josh Zumbrun, WSJ, "IMF Cuts 2019 Global Growth Outlook," 9 Apr. 2019 This does not mean that Mr Kim is interested in the sort of full-on market economy which serious foreign investment would require. The Economist, "Kim Jong Un did better than Donald Trump at the Singapore summit," 14 June 2018 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

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.

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First Known Use of market economy

1929, in the meaning defined above

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Statistics for market economy

Last Updated

11 Jul 2019

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The first known use of market economy was in 1929

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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

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