On the balance of the government's ethical function and the market efficiency in context of the development of private economy

Under the impact of the market economy wave, the private economy has quickly prospered in China. The market economy itself has the inevitable shortcomings, in particular, its duality determined by great diversity and multilevel of private economy. Correctly handling with the ethical function of the government and the market efficiency is particularly important in this circumstance. This paper analyzes the connotation of the ethical function of government, demonstrates that only by a correct understanding of the relations between the market and the government, can we get to the balance of the ethical function of government and the market efficiency. So we must implement the bidirectional reconstruction of government functions, prevent the government's role from dislocation, overrun or absence, encourage the development of the private economy, and accelerate the institutional innovation of local government.