Mixed Economies

Unit 2.4

Mixed Economies• Mixed economies have features that

comprise elements of more than one economic system.

• Today, essentially all economies are mixed economies to some degree, though we tend to identify the system that has the largest effect on the economy.– Traditional (Virtually none left)– Communist (North Korea, Cuba?)– Socialist (Many European Countries)– Capitalist (United States, Japan, South

Korea)

Trends in Modern Economies• One of the main features of the modern

world has been the intense efforts of capitalist countries to privatize all functions of the economy.

• Russia is one of the few countries that has recently nationalized private property to move more in the direction of socialism.– During the banking crisis of 2007, Iceland

nationalized the banks responsible, and today Iceland’s economy has recovered much faster than most economies.

• Another feature of the modern world is globalization.