Economic Dualism, Systems Approach and Regulation of Market Economies
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Market economy is a system that consists of inter-related individual elements such as private economic agents, private-public partnerships, state corporations and state institutions. Such a system possesses individual features of each element as well as systemic features. This is what is called economic dualism in this paper. This interpretation of economic dualism is compared to its traditional interpretation. Basic characteristics of the systems view on market economy are discussed. Some illustrations of a system organization of economy, specifically network organization, are presented. Major conclusion that comes out of this approach is: Systems view on market economy requires its regulation on the basis of a systems approach to correct for market failures and systemic risk. The paper explains what it means from an economic standpoint.
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