Definition of "market economy" [market economy]

• An economy that operates by voluntary exchange in a free market and is not planned or controlled by a central authority; a capitalistic economy. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

• "Just as the factors of production themselves emerged from a precapitalist social setting during the great economic revolution we witnessed in our opening chapters, so in our times a new economic revolution is bringing the market economy into regions that were formerly only passive, not active forces in the world economy."
• "Australia continues to support Estonia's development, especially its transition to a market economy through multilateral organisations such as the European Bank for Reconstruction (EBRD) and bilaterally through the Australian Program for Training in Eurasia (APTEA)."