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There has been some journalistic debate in Romania in the early 1990's about what is to be
constructed in Eastern Europe after the fall of communism:
'capitalism', pure or with modifications, or a 'market economy'. 
 
My personal belief is that 'capitalism' described well the developed world economy in 19th
century to just about 1950; _capital_ was the main scarce factor of growth and it
justified profits.
 
'Market economy' describes better the current state of the world: capital can be obtained
plentifully through a well-developed market; but the scarce factor to make it work are
favorable _markets_, i.e. intense consumer desires and/or cheap, organized resources
(technology, labor, nature). They generate intangible values of corporate and brand names,
that allow permanent oligopoly positions and profits better explained as _marketing
rents_. Profit becomes something temporary (compared to expectations), due to unusually
good leadership, technological advance and public  relations. The fine art of propaganda
becomes crucially important.
 
My Professor (Gh. Ruxanda) argues that 'market economy' is not enough to describe the
ideal concept; the correct one is 'free market economy'; after all, socialist exchange was
based on a market, but not one in which agents were free-deciding.
 
My questions: 
- Was 'capitalism' defined before Marx ? 
- When were 'market economy' and 'free market economy' introduced, first in scientific,
then in popular language ?
- Is there a shift of connotation in the Western world  between them ? 
 
Best Regards, 
Mircea-Valer Pauca 
 
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