20 mins, 2009        [password required] Key Topics Market Economy Boom & Bust Economy Models Globalisation What is a market economy? How does it work? This lively, wide-ranging film examines the theory and reality of economics. THE MARKET ECONOMY: Economists divide the modern economy into primary, secondary and tertiary sectors. Some organisations are owned by the government - the public sector. Some are based on free enterprise. The combination of private and public industries is called the mixed economy. What can microeconomics and macroeconomics tell us about how economies work? BOOM & BUST: There are drawbacks to the market economy - problems such as inflation and also cycles of "boom and bust". A spectacular example is the "credit crunch" of 2008. A bust can lead to a slump, or recession, like the historic Wall Street Crash of 1929 in the US. Since this time successive governments have experimented with Keynesian and monetarist ideas to keep their economies functioning. OTHER ECONOMIC MODELS: But the free market isn't the only economic model. In the past marxist ideas led to the rise of communist economies. China is still, in theory, a communist country. In practice, it has embraced capitalism, including the exploitation of workers. Globalisation has transformed where products are made and increased profits. But do economies have to be based on growth and greed? Is it possible to develop an alternative model? DVD EXTRA: Richard Sharpe, Visiting Fellow of the University of East, offers provocative views on key economic topics, including "Is the free market a myth?"