Market-oriented policy
Definition. A market-oriented policy is a supply-side approach that aims to raise an economy productive capacity by improving the working of markets, for example through deregulation, privatisation, cutting income tax rates, and reducing the power of trade unions, so that competition and incentives strengthen.
Market-oriented measures rely on market forces rather than direct government provision, contrasting with interventionist policies. They seek to shift long run aggregate supply rightward, though some can widen income inequality or carry social costs.
This term belongs to Supply Side Policies in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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