The term ‘free economy’ refers to a market system where buyers and sellers have the power to determine the price of goods and services. The prices are fixed by the forces of supply and demand of the respective commodities. When the demand of a commodity falls, the price of respective commodity also falls. But when the demand of a commodity increases and supply is inadequate to meet the demand, the prices also rise. Free economy is also synonym to free trade where government has lesser control over the market.
However, free markets are hallmark of relatively wealthier nations where people can afford high prices of commodities. Governments in relatively poor nations are forced to impose regulations over pricing and trade to feed it’s not so resourceful population.
For last one and half decade The Wall Street Journal and the Heritage Foundation have been studying the economic freedom around the world. The combo each year releases the index of economic freedom. The list is prepared on the basis of 10 benchmarks of free trade and economic freedom.
According to the index of economic freedom for year 2010, released by The Wall Street Journal and the Heritage Foundation, following is the list of world’s top 10 freest economies.
1. Hong Kong, Score 89.7
2. Singapore, Score 86.1
3. Australia, Score 82.6
4. New Zealand, Score 82.1
5. Ireland, Score 81.3
6. Switzerland, Score 81.1
7. Canada, Score 80.4
8. United States, Score 78
9. Denmark, Score 77.9
10. Chile, Score 77.2
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