What type of economic system does monarchy have?

Answer 1

A Monarchy is a system of government and not necessarily an economic system. The United Kingdom is a monarchy but it has a capitalist system of economics moderated by some socialism aspects. Health care is operated by the government as a socialist system wherein the medical providers are employees of the government and all payments are made via taxes, although some set fees may be involved on a case by case basis. Contrast this with the French medical care system where the government provides health insurance, paid for by taxes, that covers 80 percent of all health costs and the citizens must either pay the balance or buy supplementary insurance to cover it. The medical providers are private enterprises (capitalism). In the UK the post office is operated by the government and, like the US, there are private enterprise delivery services in competition with the government. The UK is a constitutional monarchy (but, without a written constitution!) and Parliament is elected. The Prime Minister is appointed by the majority party. The monarchy has little real power.

Contrast this with North Korea, which is a communist state where the government owns and operates all economic activities. There is no private ownership of any business or home and everyone is paid by the government. Yet, leadership is and has been handed down from father to son in every respect as though it was a monarchy.

You need to separate the structure of government from the structure of the economy. There are many mixes in different nations and the claims of socialism, monarchy, and communism are quite misused in the political battles of the USA. China and Vietnam are communist nations at the government level yet both have been allowing capitalism to take place in their economies to a greater or lesser extent. Socialism is quite different from communism and the pleasant nations of Norway (monarchy) and Sweden (not a monarchy) have a strong mix of socialism and capitalism within their economies.