While constructing socialist market economy

we must correctly deal with the relation between efficiency and equity. The efficiency and equity in market economy has its own peculiar characters and mechanism of realization. On one hand

market economy has natural accordance with efficiency

which

however

because of its own defect

makes efficiency low and momentary

and thus needs the regulation of equity-mechanism. On the other hand

equity is another important character of market economy

which separately exists inside and outside market. The equity inside market can directly embody efficiency

which

however

leads to unequal economy

which can be regulated by the equity outside market. So we can conclude that the key of realizing accordance of efficiency and equity is to correctly deal with the relation between the equity inside market and that outside market and make the two take effect in their own fields.