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The Limits of the Market: The Pendulum Between Government and Market by Paul De Grauwe

The Limits of the Market: The Pendulum Between Government and Market

by Paul De Grauwe
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Book cover type: Paperback
  • ISBN13: 9780198850366
  • Binding: Paperback
  • Subject: Business Management
  • Publisher: Oxford UP
  • Publisher Imprint: Oxford UP
  • Publication Date:
  • Pages: 192
  • Original Price: GBP 19.99
  • Language: English
  • Edition: N/A
  • Item Weight: 242 grams
  • BISAC Subject(s): Economic Conditions

About the Book The old discussion of 'Market or State' is obsolete. There will always have to be a mix of market and state. The only relevant question is what that mix should look like. How far do we have to let the market go its own way in order to create as much welfare as possible for everyone? What is the responsibility of the government in creating welfare? These are difficult questions. But they are also interesting questions and Paul De Grauwe analyses them in this book.

The desired mix of market and state is anything but easy to bring about. It is a difficult and sometimes destructive process that is constantly in motion. There are periods in history in which the market gains in importance. During other periods the opposite occurs and government is more dominant. The turning points in this pendulum swing typically seem to coincide with disruptive events that test the limits of market and state. Why we experience this dynamic is an important theme in the book.

Will the market, which today is afforded a greater and greater role due to globalization, run up against its limits? Or do the financial crisis and growing income inequality show that we have already reached those limits? Do we have to brace ourselves for a rejection of the capitalist system? Are we returning to an economy in which the government is running the show?

Paul De Grauwe, Professor, London School of Economics

Paul De Grauwe is Professor at the London School of Economics. He was a member of the Belgian parliament from 1991 to 2003. He is honorary doctor of the University of Sankt Gallen, the University of Turku, the University of Genoa, and the University of Valencia. He has been a visiting professor at various universities including Paris, Amsterdam, Berlin, Kiel, Milan, Pennsylvania, and Michigan. He obtained his PhD from the Johns Hopkins University in 1974. His research interests are in the economics of monetary unions and behavioural macroeconomics. His book publications include The Economics of Monetary Union (Oxford University Press, 12e, 2018) and Lectures on Behavioral Macroeconomics (Princeton University Press, 2012).

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