MANAGED ECONOMY Meaning and
Definition
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A managed economy, also referred to as a planned economy, is an economic system where the government exerts significant control and direction over economic activities. In a managed economy, the government plays a central role in planning, coordinating, and regulating various aspects of production, distribution, and consumption of goods and services.
Under a managed economy, the government formulates comprehensive economic plans that outline the goals, priorities, and strategies for economic development. These plans typically include targets for key economic indicators such as production levels, employment rates, and inflation rates. The government then actively intervenes in the economy to steer it towards achieving these objectives.
One of the key features of a managed economy is the ownership and control of key industries and resources by the state. This often involves nationalizing or directly controlling major sectors like energy, transportation, and telecommunications. The government may also establish state-owned enterprises to manage and operate various economic activities.
The government's control over the economy extends to regulations and policies that shape market conditions. This can involve imposing price controls, subsidies, trade restrictions, and labor regulations to influence supply and demand dynamics. Additionally, fiscal and monetary policies are often employed to manage aggregate demand and stabilize the overall economy.
Managed economies can vary in their degree of centralization and government intervention. In some cases, such as in command economies, the government holds absolute control over the means of production and economic activities. In other instances, managed economies may incorporate elements of free markets and private ownership, but with significant government oversight to ensure desired outcomes are achieved.
Common Misspellings for MANAGED ECONOMY
- nanaged economy
- kanaged economy
- janaged economy
- mznaged economy
- msnaged economy
- mwnaged economy
- mqnaged economy
- mabaged economy
- mamaged economy
- majaged economy
- mahaged economy
- manzged economy
- mansged economy
- manwged economy
- manqged economy
- manafed economy
- manaved economy
- manabed economy
- manahed economy
Etymology of MANAGED ECONOMY
The term "managed economy" refers to an economic system in which the government or some central authority plans and controls various aspects of production, distribution, and consumption. The etymology of the word can be broken down as follows:
1. Managed: The word "managed" originates from the Old Italian word "maneggiare", which means "to handle" or "to train". It entered the English language in the 16th century and evolved to refer to the act of directing or controlling something.
2. Economy: The term "economy" comes from the Greek word "oikonomía", consisting of "oikos" meaning "household" and "nomos" meaning "law" or "management". Originally, it referred to household management and budgeting. Over time, the term was broadened to encompass financial and commercial activities on a larger scale.
