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That is a good question. The following basic descriptions come from Wikipedia. If you would like a more in depth description please go to Wikipedia.
Constitutional Monarchy:
A constitutional monarchy is a form of monarchical government established under a constitutional system which acknowledges an elected or hereditary monarch as head of state. Modern constitutional monarchies usually implement the concept of trias politica or "separation of powers", where the monarch either is the head of the executive branch or simply has a ceremonial role. Where a monarch holds absolute power, it is known as an absolute monarchy. The process of government and law within an absolute monarchy can be very different from that in a constitutional monarchy.
In representative democracies that are constitutional monarchies, like the United Kingdom, the monarch may be regarded as the head of state but the prime minister, whose power derives directly or indirectly from elections, is head of government.
Although current constitutional monarchies are mostly representative democracies (called constitutional democratic monarchies), this has not always historically been the case. There have been monarchies which have coexisted with constitutions which were fascist (or quasi-fascist), as was the case in Italy, Japan and Spain, or with military dictatorships, as is currently the case in Thailand.
A constitutional monarchy is a form of government in which a king or queen reigns with limits to their power along with a governing body (such as Parliament), giving rise to the modern adage "the Queen reigns but does not rule". In constitutional monarchies the position of monarch may be hereditary, hence the need for a royal family, or elected (like the largely symbolic presidents of Europe). In philosophy and political science, two broad justifications are given for monarchy: the British doctrine that monarchs are part of a social contract, founded on the autonomy of the individual, and the Continental doctrine that the monarch is an embodiment of the will and character of a people.
People viewed monarchs as role models because they were men in power who were able to control and govern their kingdom with few commands. Monarchs represented perfect people in society and citizens viewed them as successful people to follow on an everyday basis. Today we may view these as individualist and communitarian doctrines, which follow the broad lines of disagreement between the English-speaking nations and those of Asia and Europe. As in the older feudal regimes, monarchs may be given the title of emperor, king, prince, duke or other traditional titles of territorial rulers. In the British empire, local monarchs -- viceroys, governors general -- have sometimes been appointed. In royal families, children and collateral relatives may have subordinate titles associated with conquered provinces, as when the heir to the British throne is called the "Prince of Wales."
Constitutional monarchs, although they have little power in government, generally play active roles in civil society, especially in not-for-profit enterprises, and play a symbolic role by representing the nation. Constitutional monarchs may also be the symbolic leaders of a nation's armed forces, and play a role in maintaining constitutional government in times of crises or change of administration.
Absolute monarchy:
In theoretical absolutism, a monarch rules with total power. Towards the end of the Middle Ages and following the Reformation, religious wars, the decline of the church, and a growing middle class resulted in the emergence of absolute leaders to provide guarantees of order. The concept of "divine right" often, as in the case of King James I/VI (King James I of England, James VI, King of Scots) covered as a justification for abuses of absolute power.
In a situation where one individual who is not necessarily knowledgeable about economics makes all economic decisions, the economy can be seriously damaged by imprudent allocation of funds. For example, Louis XIV of France abused his control of money by spending it on his Palace of Versailles and on wars that did not benefit France.
If the absolute monarch favors one group over another, a reduction of personal freedoms may result. King Louis XIV demonstrated this when he overrode the Edict of Nantes and forcibly exiled the Huguenots from France.
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