Market Versus State: in Theory and in Practice
Corvinus University of Budapest, Budapest Business School
Published in: Public Finance Quarterly 2017/3 (p. 401-410.)
SUMMARY: In her review on Nicholas Wapshott’s book Keynes and Hayek (see Botos, 2016), Katalin Botos elaborates on her thoughts regarding the two economists as the subject of Wapshott’s work and discusses one of the key economic policy issues associated with their conceptual framework (Botos, 2016). In this article I propose a few clarifications and may even challenge certain issues, while also taking a stand on the fundamental issue. I attempt to argue that the market versus state debate has long been resolved in practice, that is, with respect to economic policy; indeed, the issue may never even have been on the agenda. At the same time, I also try to argue that economists wary of government intervention will always be present in economic thinking. The reasons behind this should be sought quite simply in the development of economics, although they are not entirely independent of the Mont Pelerin Society either.
KEYWORDS: Hayek, Buchanan, Mont Pelerin Society, state intervention
JEL CODES: A11, B20, B31, P16, Y3