Invisible Hand
Liberalism asserts that laissez-faire (free market) economics will bring about a spontaneous order that benefits society
Classical liberalism was the dominant form of economic thought in the Western World from the Enlightenment through the 1930s
Fell somewhat out of favor during the ascendancy of Keynesianism 30s-70s
Liberal economics was revived since the 1980s by Ludwig von Mises, Friedrich Hayek, and Milton Friedman
The revival is sometimes call Neo-Liberalism
Became dominant again as Keynesianism fell into disfavor
Liberalism in International Political Economy
Advocates Free Trade
Liberals believe that each country should produce what it has ‘comparative advantage’ in
Nations, like people, should specialize in what they did best or most cheaply