The Constitution of Markets: Essays in Political EconomyThe failures of early "market reforms" in many post-communist transformation countries has refocused attention on the relevance of the institutional framework of market economies, an aspect grossly neglected in orthodox economic theory and often overlooked by Western economists advising transformation governments. This book examines the institutional dimension of markets and the rules and institutions that condition the operation of the market economies. Standard economics studies markets of arenas of interacting demand and supply forces. It presupposes that such interplay of economic forces takes place within a framework of rules and institutions. Yet, the issue of how these framing rules and institutions condition the operation of markets is rarely explicitly explored. By expressly looking at markets as social institutions, the articles collected in this volume seek to fill this void. Their analytical focus is on the constitution of markets in the sense of the "rules of the game" within which the evolutionary process of market competition unfolds. |
Contents
1 Constitutionally constrained and safeguarded competition in markets and politics | 1 |
The contrast between freemarket liberalism and constitutional liberalism | 17 |
Predecessor of constitutional economics | 37 |
Rational liberalism versus evolutionary agnosticism | 53 |
5 Hayeks theory of rules and the modern state | 77 |
Institutional evolution through purposeful selection | 89 |
7 The market as a creative process | 101 |
8 A constitutional economics perspective on international trade | 115 |
Notes | 131 |
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Common terms and phrases
action alternative approach argues artificial selection beneficial Böhm Buchanan citizens claim classical liberal Commons Commons's competitive order concept constitutional contracts constitutional economics constitutional political economy constraints constructivist rationalism consumer consumer sovereignty critical critique cultural evolution defined deliberate desirable discussion economic constitution economists effective enforcement equilibrium Eucken evolutionary argument evolutionary process exchange fact federal framework of rules Franz Böhm free-market freedom of contract Freiburg school Hayek human ibid individuals inter-governmental competition issue kinds Kirzner legislation Leistungswettbewerb market competition market economy market order market process means Mises Mont Pelerin Society nature neo-classical normative notes notion ordinary markets Ordnung Ordnungspolitik ordo-liberals organization paradigm particular perspective potential principle problem producers protectionist public choice theory purposeful selection question reform regulation relevant rent-seeking role Rothbard rules and institutions sense social society sociocultural evolution spontaneous order Staat task theory transactions unhampered market Vanberg voluntary Walter Eucken