In Defense of Liberal Peace

Abstract

In a recent edition of Economic Affairs, Edwin van de Haar provides evidence against the thesis that trade fosters peace. However, I argue his description of the “trade-fosters-peace” thesis as insufficiently precise is incorrect. By its nature, we must use probabilistic language. Furthermore, I argue against his discussion that Adam Smith did not think trade could foster peace between two nations, though Smith is not as strong in the liberal peace thesis as some modern interpreters would argue.

Keywords: Adam Smith, Liberal Peace, Montesquieu, International Trade, National Defense

JEL Classification: B12, B17, B31, F02, F10, F51