This Note reviews the altered role of market forces, considers their future prospects, and reflects on what U.S. policies toward market forces should be. The rise of market forces around the world in the past decade has made the international economic landscape of the 1990s fundamentally different from that of earlier decades, raising anew the cardinal policy issue of the appropriate roles and relative scale of government and markets—to what extent should markets or governments determine the allocation, use, and distribution of resources? The author discusses market-oriented policies in the "three worlds" (the industrialized nations, communist countries, and developing nations), and reasons for the rise of market forces, and outlines relevant policies and implications.
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