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The various EU economy models throughout the world, as well as their classification criteria, are listed here.

We frequently hear terminology referring to various economic types and models without understanding what they signify. This paper will explain several crucial economic terms to you.

Luis Hernandez analyzes simple descriptions of the most important types of economic models and provides an overview of the criteria used to identify each model in a report published by the Spanish journal "Sichologia e Mini."

Market-based classification : 

We can differentiate three sorts of economic models if we start with the concepts of ownership, market, and economic power.

• Market Economy: The free market, often known as capitalism, is an EU economy concept that is practiced in most Western countries and is characterized by private ownership of all goods and a major portion of the available resources. The market is organized in this manner according to the supply and demand for any item over a given period. The United States is the most visible exemplar of this economic paradigm, as well as the most vocal supporter of capitalism and free markets.

• Socialism: is a restrained economic system in which the government intervenes in the market to ensure the provision of fundamental goods and services.

Communism, often known as Marxism, is the most radical variation of the socialist paradigm, in which the state not only intervenes to manage the economy but also controls the means of production.

• A Hybrid Model: The mixed model, on the other hand, is based on maintaining the free market while adhering to the regulations imposed by the state, which is in charge of establishing such rules rather than the market itself. Keynesian economics is another name for this model.

"The United States is the most outspoken supporter of capitalism and free markets. (Shutterstock)"

Conventional Economics: 

Economic actors organize their activities and transactions according to patterns dictated by customs, norms, and beliefs under this model, which predated the establishment of modern nations and civilizations in the West.

This simplistic model can address less complex economic issues, but it has limited benefits and does not allow for money to be reinvested to improve the industrial system. This paradigm is currently found in the world's poorest countries, which frequently require aid from more fortunate nations.

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Evaluating diverse economic data is another technique to define different sorts of economies.

1. Economic growth is expected: It is the person who assesses various economic facts in a neutral manner without making any judgments, that is, without addressing whether the numbers and statistics are positive or bad signs.
2. Normative economics: Unlike the previous model, this one is based on making economic judgments, therefore it's conceivable to talk about low or high GDP, worrisome unemployment rates, insufficient investment volume, appropriate interest rates, or vice versa.

Classification according to academic terms: 

Evaluating diverse economic data is another technique to define different sorts of economies.

1. Economic growth is expected: It is the person who assesses various economic facts in a neutral manner without making any judgments, that is, without addressing whether the numbers and statistics are positive or bad signs.
2. Normative economics: Unlike the previous model, this one is based on making economic judgments, therefore it's conceivable to talk about low or high GDP, worrisome unemployment rates, insufficient investment volume, appropriate interest rates, or vice versa.

Scope-based classification: 

Other economic categories are based on the academic nomenclature used to characterize certain economic models.

1. Orthodox economics: This model is based on the criteria of rationality, individuality, and balance, and assumes that economics is a precise science. It aims to explain the behavior of the parties involved in the economic process from a rational standpoint, as well as develop models that can predict future market developments.
2. Heterodox economics: This model is based on an examination of the relationship between institutions, history, and the market's social structure, and it assumes - unlike orthodox economics - that the parties to the economic process may occasionally act in unexpected ways, making it impossible to develop reliable predictive models.

Emerging economies