"Market economy" is the Chinese people are familiar with the concept. Understood literally, the "market economy" is a composite phrase, is composed of two elements of the "market" and "economic".

    Chinese City "refers to the meaning of" transaction "," field ", the place also. Therefore, the "market" refers to the place of the transaction. Market and the social division of labor and commodity economy are inseparable. Commodity economy is more developed, more to expand the scope and capacity of the market. With the continuous development of the commodity economy, the significance of the market has also undergone a change, and now the market has not only refers to the place of a space, and was expanded to the carrier or the actual performance of the commodity economy running, that commodity exchange relationship. The market today include the following four meanings: First, the commodity exchange places and areas; economic relations between commodity producers and commodity consumers confluence sum; purchasing power needs; real customers and potential customers.

"Economic" originally refers to the ancient Chinese statecraft Tranquility, "Jinglun Tranquility", "World Jimin. English word "economy": economy, the origin of the ancient Greek, ancient Greek philosopher Xenophon first use "economic" (economy) means "household management", his "economic theory" marks the generation of economic thought in the West . Thus, the original meaning refers to the governance of household effects, to modern times to expand the scope to govern the country, is also known as the "political economy" (Political Economy) in order to distinguish it from the previous usage. This name was the "father of modern economics" - the British scholar Alfred Marshall changed back to "The Economist" (Economics). Visible English etymology of "economic" and our modern semantics "economy" is also very different. # E # # p # tab title

Modern Chinese Context "economy" is the second by the results of the Japanese academia. In the late Edo to Meiji period, the influx of European and American Thought Japan, God Tian Xiaoping first Economic primary book used the word translation in English of the "economic" Political Economy ". This period, Japanese scholars began to use the "economy" refers to the generation of the monetary economic development brought all sorts of activities, and with the formulation of economic production, consumption, trading activities necessary to maintain social life ". This definition associated with the practical problems of money, property gradually popular in Japan, this usage is different from the original use of the "economy" in the Ming and Qing dynasties in the Chinese context. Then the "economic" translation of this translation of the English "Political Economy" by Liang Qichao introduced Chinese, also replace the Yan Fu in the "Wealth of Nations" in the translation of "count" or traditional livelihoods learn, levelized learn, and thus the entire character cultural circle gradually replaced the original meaning of the economic term. In addition, from the field of view of the research methods in economics, the economy can also be understood as to how to achieve maximum results with a minimum price. That in a variety of subjective and objective, natural and human conditions constraints, how to select a consideration of a variety of possible choices minimum means or manner of the largest gains.

Due to "economic" in ancient Chinese and English are not "economy" concept refers to the modern sense, the "economy" of economics research methods also only as a research idea. Therefore, the concept of "economic" or from the sense of productive forces and production relations, the use of appropriate, that the "economy" refers to a certain range (national, regional), the organization of all production, distribution, circulation and consumption activities and relationships The system of the general term.

The market is not merely the place of a space, and was expanded to the carrier or the actual performance of the commodity economy running; economy refers to the production, distribution, circulation and consumption activities and relations system. The combination of the two was referring to the "market", "economy", that is, all the economic activities in the carrier market. In other words, the market economy is market-based economic activities.

As economic activity is involved in the production, distribution, circulation and consumption distribution of social resources, upon its freely traded in the market areas, the market has become a means of resource allocation, and therefore can be considered a market economy is a resource allocation. At the same time, due to the resources in all areas of society, to be allocated through the market mechanism, promote the orderly production of human, from the sense of the development of productive forces, the form of market economy is also productive. This is the meaning of the form of the market economy.

Market economy as a resource allocation efficiently promote the great development of the productive forces. The world's first market economy of the United Kingdom, which greatly promoted the British production progress and social development, and gave birth to the Industrial Revolution. In the 70 years of the Industrial Revolution in Britain's large-scale machine industry generally, worker productivity increased by an average of 20 times; 1850, the United Kingdom, in the world's industrial output value accounted for 39% and accounted for 21% of the total world trade, become the "factory of the world". The German nationals economists Kasper and history of diffuse flying: "sustained annual growth, up only slightly in the standard of living for many centuries, first in Britain, then in North West Europe and North America, there have been ordinary people's living standards continue to rise This process began in the late 18th century, and in the 19th century, full speed ahead in the 19th century, Britain, France and Germany, the production of 2/3 of the world's industrial output. "but rather according to Samuelson defined period of free market economy in most countries in Europe and North America in the 19th century.

The market economy is the economy of a commodity exchange, commodity exchange, the two sides can only exchange their own products. Similarly, the two sides must also be aware of their own resources. The exchange only consensual act of will, transferring their goods, possession of the goods of others in the market. This exchange relationship is a relationship of equality main form of contracts, the relationship between the two sides "need only quietly to each other as a private, is transferring to each other as independent opposed." "Private" means "property rights", "contract" means "equal", "independent" means "free" market to exist, the exchange can be carried out on the premise. Otherwise, the exchange will not be able to carry out, the market will no longer exist. The market has been able to exist and development, there must be protection system of this kind of "property rights", "equality" and "freedom" as a foundation, the universalization of these systems formed in the market, the market economy will be generated. Looking at the history of modern Western civilization, it is not difficult to find, and the rise of Western civilization is also accompanied by the formation of this system. Therefore, the market economy can be summarized as follows: to safeguard the property rights, promote equality and protect the free market system based on free choice, voluntary exchange, and voluntary cooperation as a precondition to decentralized decision spontaneously formed, characterized by free competition, to market mechanism-oriented economic form of social resource allocation. This is the real meaning of the market economy.

Is generally believed that the market economy has the following characteristics: (1) equality. The main body of the market economy is equally able to participate in free trading "people" (after the establishment of the modern enterprise system, the meaning of "person" has exceeded the natural person to become a broad category); the ② competitive. The operating mechanism of the market economy that configuration resources so that the result of competition is the competition between equal subjects; the ③ legality. The market economy is the legal economy, the subject is required to comply with a series of contracts and rules to achieve the orderly operation of the market economy; the ④ openness. With the expansion of the market economy, from the initial development of the regional market open for the national market, and then grow in continuous trading for a unified international market.