It has been defined as an idealized market system based upon the principle of laissez-faire, as, for example, envisioned by FrÃ©dÃ©ric Bastiat.
Currently, is a market system (see below). In fact, while the use of “free market” is wide-spread, the “free” is meaningless. All market systems are regulated to a large extent.
Summary of Free Market Economy
The economic system of a nation in which market forces determine which goods and services are produced, and at what price they are offered. Free market economies do not contain substantial government controls on resource availability, price levels, or central planning of economic objectives. (Main Author: William J. Miller)
It is an economic system whereby decision making is distributed among the market participants, each seeking to maximize his return based on competition with the other market participants.
Market systems have always been regulated to some degree, as a truly free market has never appealed to those in power. Market systems, in the history of the last 2 centuries, have proved more efficient and responsive to change than systems based upon centralized decision-making (see socialism).
- Interbank Market
- Foreign Market Price
- Free Trade Area
- Free Ships
- Free Goods
- Common Market
- Central American Common Market
- Spot Market
- Fair Market Value