Ekonomski Vjesnik (Dec 2011)
Compendium on (neo)liberalism
Abstract
Capitalism cannot exist without a certain degree of liberalism. However, according to critics, neoliberalism has gone too far and has exceeded the framework of “adequate freedom” of capitalism. Neoliberalism brings to life the classic liberal doubt about the ability of the state to manage the economy. Aversion to “great government” and state intervention has acquired different theoretical forms. Monetarism, public choice theory, rational expectations and supply economics have expressed their doubts about state intervention and its efficiency in different ways and for different reasons. Obviously, the government (state) is not perfect. However, the market is also not perfect, which is admitted by both liberals and neoliberals. Thus, there will be continued attempts by both supporters of so-called free market and supporters of state intervention to “fix” this imperfect, capitalist world.
