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1. HOW LIBERAL IS NEOLIBERALISM? RETHINKING THE CONCEPTIONS OF THE WELFARE STATE, LEGISLATIVE ORGANS, SOCIAL JUSTICE, AND COMPETITION IN HAYEK’S THOUGHT

Author:
Selma TOKTAŞ
Publication Date:
10-2018
Content Type:
Journal Article
Journal:
Alternative Politics
Institution:
Department of International Relations, Abant Izzet Baysal University, Turkey
Abstract:
With the expansion of US-led economic policy following the economic depression of the 1970s and the proliferation of new information and communication technologies, the 1980s became a crucial period signaling dramatic changes all around the world. By the end of these years, the Keynesian economy, which accredited states as active and interventionist players in the economy in order to ensure both growth and equity, began to break down. In this period economic liberalism gained power again and political and economic theories and practices turned towards neoliberalism. As a result, deregulation, privatization and the withdrawal of the state from many areas were accelerated. All these changes were significant and affected the structure of almost everything, including education, culture, life and trends in thought. Friedrich A. von Hayek was one of the pioneers of this transformation. Therefore, this descriptive study attempts to understand the points where neoliberalism combines with liberalism and how it is separated from liberalism through Hayek's views about the welfare state, legislative body, social justice, and competition terms. In other words, this study aims to explore the extent to which Hayek’s neoliberalism is a continuation or a break from liberalism.
Topic:
Economic structure, Neoliberalism, Social Justice, Welfare, and Liberalism
Political Geography:
United States, North America, and Global Focus

2. Monetary Policy in an Uncertain World: The Case for Rules

Author:
James A. Dorn
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
Since monetary policy operates in an uncertain world, discretionary policymaking relying on macroeconomic models of the economy is a weak reed upon which to base policy. The complexity of economic systems and constant changes in the underlying data mean errors may occur in a discretionary regime that can lead to monetary and financial instability.1 The 2008 financial crisis is a case in point: central bankers and their expert staffs failed to anticipate the crisis, and may have worsened it by keeping policy rates too low for too long (Taylor 2012). Moving to a rules‐​based regime would not eliminate radical uncertainty, but it could decrease institutional uncertainty—or what Robert Higgs (1997) has called “regime uncertainty”—and thus reduce the frequency of policy errors. Higgs focused on the uncertainty caused by fiscal and regulatory policies that attenuated private property rights by decreasing expected returns on capital. A discretionary monetary regime increases uncertainty about the future purchasing power of money and thereby undermines an important property right.
Topic:
Economics, Monetary Policy, Economic structure, and Macroeconomics
Political Geography:
Global Focus

3. A Paradigm Shift thatNever Will Be?:Justin Lin’s New Structural Economics (pdf)

Author:
Ben Fine and Elisa Van Waeyenberge
Publication Date:
01-2013
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper assesses the attempt by Justin Lin, former Chief Economist of the World Bank, to posit a new development paradigm through his New Structural Economics, NSE. Lin’s attempt to redefine development economics deserves scrutiny for at least two reasons. He launched his new framework from the platform that his position as Chief Economist at the Bank. Critical scrutiny of his propositions then allows for continued insights into the complex relationship between scholarship and policy at the Bank and further illuminates, more broadly, the role of the Bank across the spectrum of development economics, development studies and development policy. Second, Lin’s framework claims a return to a “structural” understanding of development, with a strong industrial policy rhetoric emanating from it. This has been greeted with considerable enthusiasm by erstwhile critics of the Bank. Closer scrutiny of the NSE, however, both reveals the flawed nature of its core theoretical notion of comparative advantage and exposes its strong, if unfortunately conservative, commitment to a flawed and incoherently applied neoclassical economics. These issues are explored across Lin’s propositions regarding structural change, the role of the state and finance and are further examined in the context of specific policy interventions that Lin attaches to the NSE.
Topic:
Development, Economics, Industrial Policy, World Bank, and Economic structure
Political Geography:
Global Focus