Description
Book SynopsisThis book is an account of one of the central issues in economics, namely the potential of the free market system to solve social and economic problems. It explains the basic assumptions of the free market argument, examines their historical development, presents the standard criticisms of them and demonstrates how they can lead to social outcomes unacceptable to a consistent free market advocate. The author argues that while markets do work in many situations, they are not panaceas, and for some problems, non-market institutions organized and co-ordinated by the state are essential.
Table of ContentsThe free market argument; standard criticisms of the free market argument; why are free markets so good?; rationality and market failure; free market policy prescriptions; free market assumptions - some experimental evidence; blame-free justice; rational expectations and Newcomb's problem; why is the American free market system so stable?.
