Modern market economy models and their distinctive features

The structure of the market economy consists of financial, commercial, production and information links, which use the norms of business relations as a legal basis, interacting with each other. A market is a place where different groups come into contact, which have common ground. Some are producers (offer their goods or services), the latter - respectively, consumers (acquire them). As a result, prices appear, which are set by the market, the amount of sales stabilizes.

Due to the limited economic resources in comparison with the public needs for goods and services, methods for their distribution among different directions of consumption have been developed. Thus, there was an economic system that represents the aggregate value of organizational and socio-economic relations between consumers and producers.

Depending on the form of ownership and the regulation of economic activity, the traditional one (which is based on the dominance of traditional methods of economic activity), the command (characterized by state ownership, in which most enterprises are located) and the market type of economy are singled out. In turn, the latter has certain models of market economy, which were formed depending on national cultural traditions and historical conditions of formation.

To date, all countries - new industrial and post-industrial - are countries with a market economy. Accordingly, each of them formed its own type of market economy model, depending on the geographic location of the country, the existence of natural resources, the conditions of development, the level of production forces and the direction of society in the social plan.

Planned management of the economy, which was used in the USSR, has sunk into oblivion. Now the main modern models of the market economy are divided into other types. Among them are the following:

1. American model of market economy. It is characterized by a minimal share of state property, a minor regulatory role of the state in the country's economy, a sharp differentiation of the population into rich and poor, a significant difference in wages and an acceptable standard of living for the poor.

2. Japanese model of market economy. It is distinguished by an increase in the role of social and technical and economic efficiency of entrepreneurship. Also its characteristic feature is greater autonomy from the state budget, greater independence and commercialization of activities. Distinctions of the Japanese model also can be called significant influence of the state on directions of development of economy, universal application of lifelong hiring of workers of firms, insignificant difference in levels of wages and involvement of workers in company management.

3. The German model is characterized by the impact of the state on the economy in solving social problems, the decisive role of banks and the full autonomy of the central bank. However, the difference in wages, as in the Japanese model, is insignificant.

4. Swedish is often called the second model of socialism. Here is a big state role in ensuring economic stability and income distribution. Sweden is one of the countries with the highest standard of living and the minimum level of unemployment.

As we see, each of the countries differs by its characteristic approaches and distinctive features of the conditions of management. At the same time, different models of a market economy have common features, such as patterns of ownership, free prices for services and goods, free competition, entrepreneurial activity and a certain type of system of state regulation of economic activity.