General
Monarchism generally means ruled by one ruler called a king or queen who has inherited the power over the country or state or has been given divine right. Usually this is for the benefit of the country or state. However if the ruler only has self-interests, he will become a tyrant. For example, Hippias who once ruled Greece was a tyrant. (Usually in countries who have Absolute monarchy)
An example of a country with monarchal rule is Brunei. In Brunei, the monarchal rule is called a Muslim Monarchy. This means that the Sultan of Brunei goes unchecked. The Sultan is the Prime Minister as well as the Finance and Defense Minister. As it is a monarchal rule, most of the seats in the cabinet are occupied by the royal family.
These countries are generally rich but with a huge difference in wealth levels. Education is relatively not focused much on as the government spends less on it rather than Health or Defense. An Example is Brunei which spends 3.1% of GDP on Education while they spend 5.8% on Defense and 5.7% on Health.

These countries are usually rich in natural resources like oil and their economy is largely on the export on such resources. Therefore, they are damaging the environment. As these countries are relatively rich from their exports of natural resources, their level of technology are relatively high and are usually 1st or 2nd world countries.
These countries seldom have conflicts except Saudi Arabia who had civil wars. Citizens of such countries have differing opinions on this type of government. The People enjoy benefits due to money earned from the exports of natural resources. However there is wealth disparity whereby the king or sultan is very rich while the people are just able to feed themselves. Therefore, this makes the people less patriotic towards the country as they are not able to live a wealthy life.
There is not much propaganda in these countries. However there is a lot of political censorship in national media.
Abosolute Monarchy
Absolute monarchism refers to one person who has absolute rule over a country or a state. This form of rule is usually hereditary or they claim as being given divine right with or without advisors. This may not be a bad form of government and is necessary for certain countries. For example, when the French did not have Law and Order, absolute Monarchism helped it to boost its economy and get the country in order again. Other less developed countries in Eastern Europe heard of absolute Monarchism and also adopted Absolute Monarchy. Thus, this caused these countries to have a powerful monarchy.

Constitutional Monarchism
The system of Constitutional Monarchy has a Head of State and a Government. The advantage of having a Constitutional Monarchy is that the Head of State does not change as the governments change. Due to the fact that only the elected Officials can pass laws, the Head of State acts as an advisor to the Officials. The Head of State’s job also includes choosing the Prime Minister and checking through legislations so to decide whether to accept or reject them.
Executive Monarchs
Executive Monarchs are Monarchs that have the power to create their own laws and pass them. An example of these Monarchs is the British Monarchs from the 17th Century.
References
Monarchism: Definition and Much More from Answers.com. (n.d.). Retrieved March 22, 2008, from http://www.answers.com/topic/monarchism.
The Monarchy Today > What is constitutional monarchy?. (n.d.). Retrieved March 22, 2008, from http://194.203.40.17/output/Page4682.asp.
Vidljinovic, Z. (1997, Nov. 17). Absolute Monarchy. Retrieved March 22, 2008, from http://www.thenagain.info/Webchron/Glossary/AbsMonarch.html.
New Earth Media (2003). The Book Of Rule : How The World is Governed. Great Britain: Dorling Kindersley Limited .
Democracy (n.d.). Retrieved March 22, 2008, from http://www.azete.com/preview/39582