Free Markets, Free Choice

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Summary

In a market economy, consumers have a wide choice of goods. This causes business competition that results in higher-quality goods at competitive prices-the basic principle behind supply-and-demand ...

In a market economy, consumers have a wide choice of goods. This causes business competition that results in higher-quality goods at competitive prices-the basic principle behind supply-and-demand economics. The marketplace is trusted to answer the questions: What? How? And for whom? This is unlike centrally planned economies where the government determines the answers. In Russia, the IMF encourages these principles as the economy transitions into the early stages of a free market. Russia's conversion includes shifting from defense supplies to consumer goods and reforming work habits and credit cooperatives at the bottom level. Other issues, such as the role of the government in protecting those who cannot participate, like the very young and the elderly, are examined.

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