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Typology[ edit ] Mix of free markets and state intervention[ edit ] This meaning of a mixed economy refers to a combination of market forces with state intervention in the form of regulations, macroeconomic policies and social welfare interventions aimed at improving market outcomes.

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As such, this type of mixed economy falls under the framework of a capitalistic market economy, with macroeconomic interventions aimed at promoting the stability of capitalism.

Most contemporary market-oriented economies fall under this category, including the economy of the United States.

Under its influence, Germany emerged from desolation and defeat to become an industrial giant within the European Union. During this period, the United States grew into the largest economy in the world, surpassing the United Kingdom though not the British Empire by As such, it is sometimes described as a "middle path" or transitional state between capitalism and socialism, but it can also refer to a mixture of state capitalism with private capitalism.

Examples include the economies of Singapore , Norway , Vietnam and China —all of which feature large state-owned enterprise sectors operating alongside large private sectors.

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The French economy featured a large state sector from until , mixing a substantial amount of state-owned enterprises and nationalized firms with private enterprise. In the s, the central government concentrated its ownership in strategic sectors of the economy, but local and provincial level state-owned enterprises continue to operate in almost every industry including information technology, automobiles, machinery and hospitality.

The latest round of state-owned enterprise reform initiated in stressed increased dividend payouts of state enterprises to the central government and "mixed ownership reform" which includes partial private investment into state-owned firms.

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A Course in Power Systems

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As such, this type of mixed economy falls under the framework of a capitalistic market economy, with macroeconomic interventions aimed at promoting the stability of capitalism.

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