What types of countries have the market economy?

In the market economy, the cost of goods is powered by market dynamics, such as supply and demand than decisions of government creators. Most nations in the Western world, such as the United States, Canada and Germany, have a market economy, and these types of economies are not unusual in other parts of the world, including Asia and Africa. Other nations tend to have mixed economies, although there are planned economies in some countries.

The concept of the market economy developed centuries ago when people began to exchange goods such as wheat, gold and wool. In many areas, peasants were able to negotiate prices for these goods with each other, and this freedom to negotiate the cost of commodities is the core of the modern market economy. The costs of certain goods were once controlled by monarchs or feudal chiefs, but during the 18th and 19th centuries these rules were released in many areas and society around the world have passed to market economies.

During the 20th century, totalitarian communist regimes in Eastern Europe, Asia and Africa believed that the market economy preferred the rich and that the average citizen would benefit from the planned economy. In countries, including the Soviet Union, China and Albania, government agencies have taken responsibility for price products and commodities. In addition, wage checks have often been brought, which often meant that qualified and unskilled workers were paid the same wage. Theoretically, everyone should buy goods, because wages and prices were the same throughout the nation.

In the second part of the 20th century, civil riots broke out in many nations that planned the economies. Authorities in some of these countries, such as Hungary, Poland and Romania, decided to cancel prices and accept the economy of the Western style market. Duals in some other countries have decided to keep control of some aspects of the economy, but to enable market forces to manage the prices of certain goods and services to allow each otherMaintain control over some aspects of the economy and enabled market forces, but to allow market forces, but to allow the market forces to manage the prices of certain goods and services. These nations are said to have a mixed economy.

Theoretically, governments in nations with the market economy Laissez-Faire have an attitude, which means that politicians do not try to manipulate towards the economy. At the time of the recession, however, government agencies in many Western countries at the time of recession took steps to influence price movements. These measures include government agencies that provide mortgages to encourage creditors to write loans with the final result that house prices remain stable or growth. Critics of such an event say that governments should not take such measures in nations with real market economies, while supporters of such moves claim that these steps are occasionally necessary to prevent the recession of economic depression.