Editing Market economy (section)

=== Regional models ===
==== Anglo-Saxon model ====
{{main|Anglo-Saxon model}}
Anglo-Saxon capitalism is the form of capitalism predominant in Anglophone countries and typified by the [[economy of the United States]]. It is contrasted with European models of capitalism such as the continental [[Social market economy|social market]] model and the [[Nordic model]]. Anglo-Saxon capitalism refers to a macroeconomic policy regime and capital market structure common to the Anglophone economies. Among these characteristics are low rates of taxation, more open international markets, lower labor market protections and a less generous [[welfare state]] eschewing [[collective bargaining]] schemes found in the continental and northern European models of capitalism.<ref>''Anglo-Saxon capitalism'', Business Dictionary on BusinessDictionary.com: http://www.businessdictionary.com/definition/Anglo-Saxon-capitalism.html {{Webarchive|url=https://web.archive.org/web/20200927202903/http://www.businessdictionary.com/definition/Anglo-Saxon-capitalism.html |date=2020-09-27 }}</ref>

==== East Asian model ====
{{main|East Asian model}}
The East Asian model of capitalism involves a strong role for state investment and in some instances involves state-owned enterprises. The state takes an active role in promoting economic development through subsidies, the facilitation of "national champions" and an export-based model of growth. The actual practice of this model varies by country. This designation has been applied to the economies of [[China]], [[Japan]], [[Singapore]], [[South Korea]], [[Vietnam]], and sometimes to those of [[Hong Kong]] and [[Taiwan]].<ref name="An East Asian Model of Economic Development: Japan, Taiwan and South Korea, 1988">{{cite journal |last1=Kuznets |first1=Paul W. |title=An East Asian Model of Economic Development: Japan, Taiwan, and South Korea |journal=Economic Development and Cultural Change |date=April 1988 |volume=36 |issue=S3 |pages=S11–S43 |doi=10.1086/edcc.36.s3.1566537 |s2cid=153899556}}</ref>

A related concept in political science is the [[developmental state]].

==== Social market economy ====
{{main|Social market economy}}
The social market economy was implemented by [[Alfred Müller-Armack]] and [[Ludwig Erhard]] after [[World War II]] in [[West Germany]]. The social market economic model, sometimes called [[Rhine capitalism]], is based upon the idea of realizing the benefits of a free-market economy, especially economic performance and high supply of goods while avoiding disadvantages such as [[market failure]], destructive competition, concentration of [[economic power]] and the socially harmful effects of market processes. The aim of the social market economy is to realize greatest prosperity combined with best possible social security. One difference from the free market economy is that the state is not passive, but instead takes active [[Regulation|regulatory]] measures.<ref>[http://www.bpb.de/popup/popup_lemmata.html?guid=Y0VZ7J keyword "social market economy" = “Soziale Marktwirtschaft”] {{Webarchive|url=https://web.archive.org/web/20111212140139/http://www.bpb.de/popup/popup_lemmata.html?guid=Y0VZ7J |date=2011-12-12 }} Duden Wirtschaft von A bis Z. Grundlagenwissen für Schule und Studium, Beruf und Alltag. 2. Aufl. Mannheim: Bibliographisches Institut & F.A. Brockhaus 2004. Lizenzausgabe Bonn: Bundeszentrale für politische Bildung 2004.</ref> The social policy objectives include employment, housing and education policies, as well as a socio-politically motivated balancing of the distribution of income growth. Characteristics of social market economies are a strong [[competition policy]] and a [[contractionary monetary policy]]. The philosophical background is [[neoliberalism]] or [[ordoliberalism]].<ref>[[Duden]] Wirtschaft von A bis Z. [http://www.bpb.de/nachschlagen/lexika/lexikon-der-wirtschaft/20642/soziale-marktwirtschaft "Eintrag: keyword "social market economy" = Soziale Marktwirtschaft"] {{Webarchive|url=https://web.archive.org/web/20120829015237/http://www.bpb.de/nachschlagen/lexika/lexikon-der-wirtschaft/20642/soziale-marktwirtschaft |date=2012-08-29 }}.</ref>