On the Typing and Evolution of Economic Systems

Abstract

The article explores a number of methodological problems in the theory and practice of function of economic systems, in particular their typing, component structure, attributes and properties, as well as the factors underlying their development and transformation. Three approaches in the studying economic systems – materialistic, idealistic, and functional – have been allocated and analyzed. Particular attention has been given to revising and defining the scientific terminology used in the studying economic systems. After this it become possible to make certain clarifications and additions to the system of terms of the national science of economy. The differences between the attributes of an economic system, such as fragility, instability and volatility, have been identified. It has been displayed that volatility is a special attribute specific only to the transitional economic systems, which are characterized by the low efficiency of operating mechanisms, the main reason the is institutional inorderability. The article has further developed a theoretical concept, explaining the evolutionary changes in contemporary economic systems as proposed by the American researcher O. Scharmer.

Keywords

• economic system
• institutional innovations
• unsustainable economic system
• mode of production
• financialization
• materialistic approach
• idealistic approach
• functional approach