Confidence and the Liberal Economic Imperative
S. H. Hanke, and A. A. Walters, Capital Markets and Development. San Francisco: Institute for Contemporary Studies Press, 1991
8 Pages Posted: 29 Jan 2013
Date Written: 1991
Chapter 9 from Steve Hanke and Alan Walters' "Capital Markets and Development:"
In developing countries, there is considerable debate about the desirability of moving away from a controlled economic order and toward a more liberal one. This debate represents a major change in thinking. Several developments have motivated this change. An accumulation of unambiguous scholarly evidence has shown that central control and interventionism retard economic progress (Scully 1988). Today’s observations provide a booming echo of yesterday’s scholarship. Interventionist developing countries have registered substandard performances, and their leaders have witnessed the collapse of the socialist economies of Eastern Europe. In addition, the deregulation and globalization of markets, as well as the accompanying innovations that have exploded during the past decade, have altered the international economic setting. In this new economic environment, even the most ardent dirigistes have been forced, as a matter of survival, to embrace some aspects of the liberal economic order.
Keywords: Hanke Walters Capital Markets Development Confidence Liberal Economic Imperative
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