Definition

A system where the government has a strong control over the economy, guiding and directing economic activity rather than leaving it entirely to market forces.

Example

In a dirigisme economy, the government plays a crucial role in planning and regulating industries.

Conversation

Have you heard about the concept of dirigisme in economics?

Yeah, it’s where the government has a strong control over the economy, right?

Exactly! I think it can be beneficial in some situations, especially during crises.

For sure, but it can also lead to inefficiencies if not managed well.

Synonyms & Antonyms

Root Explanation

Dirigisme is derived from the French word 'diriger' (meaning to direct) and the suffix '-isme' (indicating a doctrine or system). The term refers to an economic doctrine where the state exerts strong directive influence over the economy.

Memory Tip

Think of 'directing' ('diriger') the economy as a system ('-isme') — that's what dirigisme means.

Visually Confused Words