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There are different types of monarchy, and they have different positive and negative attributes. However, there are some central advantages that all monarchies possess.

An absolute monarchy, such as that in the current Kingdom of Saudi Arabia or the Kingdom of France (up until 1789), is where the sovereign has absolute power to make law and to govern; it has the potential to provide a great degree of stability and continuity of policy. Usually unrestrained by public scrutiny of its actions, an absolute monarch can react quickly to events. These countries have a large potential for falling into authoritarianism and can easily be insulated from public opinion. The large amount of power put into the hands of the monarch makes it more likely that a weak monarch will be ousted in favour of a rival.

A strong constitutional monarchy, such as the current Principality of Liechtenstein or the Kingdom of England between 1689 and 1701, when it was merged with Scotland and Wales to then become the United Kingdom, and then in the United Kingdom after 1701 to the mid-1830's, is where the sovereign plays an active role in making policy, but appoints a head of government (usually known as a prime minister nowadays) from the legislature to make policy as well as govern. Provided the legislature is representative of the country, this tends to provide a great deal of stability along with laws formed around public opinion, but the more interference from the monarch, the more likely it will become either a weak constitutional monarchy or a limited monarchy.

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