Economic system, that is, the way of organization and operation of economic activities (production, exchange, distribution and consumption, etc.) carried out by all kinds of economic agents within a certain social scope.
The liberal economic model represented by the United States: the government tries to let the market mechanism work as much as possible, fully encourages free competition, and the government mainly regulates the market indirectly through fiscal and monetary policies, and carries out the necessary supervision of business activities according to the law. This model can also be referred to as "government-regulated market economy".
The social market economy model represented by Germany: free competition and government control coexist, economic leverage and government guidance are used in parallel, and economic growth and social welfare are given equal importance. This model can also be called a government-led market economy.
The government-led economic model represented by Japan: the government uses strict rules to require enterprises to comply with market rules, uses the profit mechanism to induce enterprise behavior, uses economic planning and industrial policy to guide the development direction of enterprises, and makes enterprises respect the government's intention through administrative guidance, i.e., realizing the government's planning of economic development goals through effective collaboration between the government and the people.