The economic order comprises all (legal) norms and institutions that regulate economic activity in an economy . The economic system lays down the rules according to which actors in a country can and should act in economic activity. It essentially influences the shape, size and development of an economy.
Classification criteria of economic systems
Fundamental criteria for the classification of economic systems are the control of economic processes , the question of property rights , the place of pricing , the forms of operational profitability analysis and the forms of finance .
- Forms of planning and control
- If production and consumption are determined by a central state authority, one speaks of a central administration economy . In a market economy, on the other hand, planning is decentralized, that is, each economic entity plans for itself. The coordination of economic processes takes place via the market, i.e. via supply and demand .
- Property constitution
- In socialist economic systems the means of production are nationalized, capitalist ones are characterized by private ownership of the means of production.
As a rule, socialism and central administration, as well as the market economy and private property, are linked.
- Place of pricing
- If the price is determined by supply and demand on the market, it is a market economy, whereas if a central planning instrument sets the price for products, it is a central administration economy.
- Forms of profitability analysis
- Another criterion for the definition of an economic system is the form of the operational profitability analysis. The profit principle can be found in market economy systems, i. H. Businesses strive to make a profit. In planned economic systems there is the plan fulfillment principle, i.e. H. the companies strive to fulfill the plan given to them centrally.
- Forms of finance
- In order to describe the prevailing economic order of an economy, the forms of the financial economy can also be considered. An independent banking system and a functioning tax and levy system therefore serve as an indication of a basic market economy.
The bearers of the economic order in a democratic society are the state and the self-governing organs of the economy that it sanctioned . The economic order is mostly closely related to economic , financial and social policy .
- Hans Kaminski : OEC. Basic questions of economic activity . Westermann Verlag, Braunschweig 2005.
- Walter Eucken : regulatory policy. Edited by Walter Oswald, 1st edition, Walter Eucken Archive: Series Second Enlightenment, Lit Verlag, Münster 1999, ISBN 3-8258-4056-5 .
- Walter Eucken : Principles of Economic Policy . Edited by E. Eucken, PK Hensel, 6th edition, JCB Mohr, Tübingen 1990, ISBN 3-16-345548-4 .
- K. Paul Hensel: Basic forms of the economic order. Market Economy - Central Administration Economy . 3rd edition, Beck, Munich 1978.