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Index of Economic Freedom

Term Definition
Index of Economic Freedom

The Index of Economic Freedom (IEF) is an annual composite indicator that measures 10 quantitative and qualitative factors, grouped into four major pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). The index is published annually by The Heritage Foundation (prominent Washington think tank) and The Wall Street Journal.