Many economists argue that economic analysis should avoid the distributional consequences of policies. In democratic countries, however, the political power of individuals inevitably reflects their wealth and income. You cannot have a democracy when income and wealth distributions are greatly uneven. Monitoring the State or the Market explains that absolute income equality is not consistent with a market economy, yet neither is large inequality. This study provides a broad survey of major social and economic developments over the past two centuries, beginning with the Industrial Revolution and laissez faire and ending with neoliberalism and market fundamentalism. It explains how each of these periods initially brought moderation and accompanying benefits, showing that some countries, such as those in Scandinavia, have demonstrated that it is possible to have low Gini coefficients (low inequality), while preserving economic freedom and prosperity.
By:
Vito Tanzi (International Institute of Public Finance (IIPF) Germany)
Imprint: Cambridge University Press
Country of Publication: United Kingdom
Dimensions:
Height: 235mm,
Width: 155mm,
Spine: 18mm
Weight: 465g
ISBN: 9781009434447
ISBN 10: 1009434446
Pages: 200
Publication Date: 21 December 2023
Audience:
General/trade
,
ELT Advanced
Format: Hardback
Publisher's Status: Active
Part I.: 1. Introduction; 2. Early views on the economic role of the state; 3. Laissez faire and the industrial revolution; 4. The Beginning of economic reforms; 5. On resource allocation, optimality and equity; 6. On beginning of changes in the activities of governments; 7. Toward larger government roles; Part II.: 8. The Growing importance of equity and safety nets; 9. The creation of welfare states; 10. The conservative counterrevolution; 11. Different approaches to social protection; 12. The economy in the 1970s; Part III.: 13. A return to 'laissez faire'?; 14. The policies of market fundamentalism: tax reforms, globalization and deregulation; 15. The growing importance of monetary policy; 16. Equity aspects of market fundamentalism; 17. Other aspects of market fundamentalism; 18. Cultural aspects of fundamentalism; 19. Growing conflict between efficiency and equity; 20. Intellectual property and venture capitalists; 21. The world in the 21st century; 22. Impact of new economic developments on market and democracy; 23. More on economy and culture in the present time; 24. Summing up and general conclusions.
Vito Tanzi is Honorary President of the International Institute of Public Finance (IIPF). He was the Undersecretary for Economy and Finance for the Italian government and the Director of the Fiscal Affairs Department at the International Monetary Fund. He is the recipient of five honorary degrees and has authored twenty-five books and hundreds of articles. An economic effect, the 'Tanzi Effect,' carries his name.
Reviews for Monitoring the State or the Market: From Laissez Faire to Market Fundamentalism
'The book encapsulates Tanzi's reflections and musings on both economic history and the history of economic thought from the three periods studied. His aim of evaluating who was more sensible, those pushing for minimal state involvement or those arguing for a larger role for the government, is admirable and timely. Recommended.' K. J. Murphy, CHOICE
