Invisible Hand of the Market

Definition of Invisible Hand of the Market

The Canada social science dictionary [1] provides the following meaning of Invisible Hand of the Market: A phrase associated with the great classical economist Adam Smith (1723-1790) referring to the self-regulating capacity of free markets. Free markets, through the mechanism of supply and demand, are assumed to provide the optimal allocation of scarce economic resources to alternate uses without the need for any conscious direction or control. See: MARKET ECONOMY in this legal dictionary and in the world encyclopedia of law.

Invisible Hand of the Market: Resources

Notes and References

• Drislane, R., & Parkinson, G. (2016). (Concept of) Invisible Hand of the Market. Online dictionary of the social sciences. Open University of Canada