The economic theory explores two alternative economic systems: market economy and command (planned) economy. It. Englis calls these pure abstract types the individualistic (capitalistic and co-operative) and the solidaristic (socialism). I-Ie regards crossbreeding of both systems as a historic rule. According to him a real system is always a combination of individualism and solidarism. F. A. Hayek uses for compared economic systems the denotations, individualism and collectivism. He calls to the attention that the term "liberal" (primarily follower of the "laissez-faire" idea) expresses nowadays nearly the contrary. He accentuates out market economy preferences, but he does not understand by the market functioning absolutely. In his opinion the government has to create conditions for enforcement of competition, to substitute it in those situations where it cannot be efficient and to ensure the basic securities of life that are the important precondition for freedom. Liberalism of the 20(th) century is of a very heterogeneous and changing nature and therefore it is difficult to distinguish precisely particular streams and schools with various attributes. They are mutually penetrating, changing names and content. For instance, neoconservatism is gradually merging with the traditional conservatism from which it originally arose. The comparison of economic systems should be always done on the same level of abstraction, i.e. either on a most general level, or as a comparison of real economic systems. The goal of economic policy cannot be the implementation of the economic model in its purest possible form. The main problem is to determine a rational rate first of all in the field of taxation and redistribution of income, in the extent and structure of social expenditures, and in the position of the public sector in the economy. Market and government regulation have their positive and negative consequences in economic practice. For instance, Mexico and Turkey but also the USA and Japan have the lowest tax burden and redistribution of income within OECD countries. On the other hand, Denmark has the highest tax burden among OECD countries, high social expenditures, but simultaneously higher economic growth, labour productivity, lower budget deficit, and lower government debt than many other countries with lower rates of income redistribution. A particular tool and measure of economic policy is not good or bad by itself, but it finds in every economic model its own concrete contents and also its specific consequences. Since about 1990's various approaches to the economic policy have been converging in various aspects. Nowadays, the succession of a new government with a different political orientation does not necessarily mean sweeping changes in economic policy; however a certain correction of economic policy is enforced and greater continuity is preserved, as compared to the past. However, the extent of redistribution of GDP during the last 30 years has been increasing in all EU (or OECD) countries. A modern economy can perform efficiently neither without market mechanisms, nor without regulation by government. However, it is difficult to find and change the relation between market and government regulation along with changes of economic, social, political, and other conditions, both, internal and external.
