Liberalism in Crisis and the Promise of a Reconstructed Liberalism

Journal of Contextual Economics – Schmollers Jahrbuch 139, no. 2–4, 2019

36 Pages Posted: 19 Mar 2020

See all articles by Peter J. Boettke

Peter J. Boettke

George Mason University - Department of Economics

Rosolino Candela

Mercatus Center at George Mason University

Date Written: 2019

Abstract

What explains the simultaneous critiques of economic theory and liberalism during the 1930s? Early neoclassical economists had a common understanding of the proper institutional context under-girding a liberal market order. From the marginal revolution emerged a growing emphasis on analyzing markets as equilibrium states rather than processes. Because the institutions that frame a liberal market order were taken as given, to the point of relative neglect, this resulted in the notion that markets operated in an institutional vacuum. The resulting association of liberalism with laissez faire, therefore, prompted a restatement of the role institutions play in the operation of a liberal market order.

Keywords: Walter Lippmann Colloquium; F.A. Hayek; Frank Knight; Ludwig Von Mises; Henry Simons

JEL Classification: B25; B31; P16

Suggested Citation

Boettke, Peter J. and Candela, Rosolino, Liberalism in Crisis and the Promise of a Reconstructed Liberalism (2019). Journal of Contextual Economics – Schmollers Jahrbuch 139, no. 2–4, 2019. Available at SSRN: https://ssrn.com/abstract=3539237 or http://dx.doi.org/10.2139/ssrn.3539237

Peter J. Boettke

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States
703-993-1149 (Phone)
703-993-1133 (Fax)

Rosolino Candela (Contact Author)

Mercatus Center at George Mason University ( email )

4400 University Drive
Fairfax, VA 22030
United States

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