Liberalism in Crisis and the Promise of a Reconstructed Liberalism
Journal of Contextual Economics – Schmollers Jahrbuch 139, no. 2–4, 2019
37 Pages Posted: 19 Mar 2020 Last revised: 13 May 2020
Date Written: May 5, 2020
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: Suggested Citation