Neoliberalism and deregulation have come to dominate national and international political economy. This major book addresses this convergence and analyzes the implications for the future of capitalist diversity. It considers important questions such as: Is the preference for free markets a well-founded response to intensified global competition? Does this mean that all advanced societies must all converge on an imitation of the United States? What are the implications for the institutional diversity of the advanced economies? Political Economy of Modern Capitalism provides a practical and informed analysis of the public policy choices facing governments and business around the world.

International Finance and the Erosion of Capitalist Diversity

International Finance and the Erosion of Capitalist Diversity

International finance and the erosion of capitalist diversity
Philip G.Cerny

In order for people to behave as ‘efficient’ capitalist economic actors, they must be able to exchange the surpluses they produce (or own) with a range of other specialist producers of commodities, owners of assets, or providers of services. Measuring the relative value of the things exchanged must be done through the price mechanism. An efficient financial system is, therefore, the essence of Adam Smith's ‘invisible hand’ – which in ideal conditions might theoretically permit the capitalist system to be both self-regulating and truly international. The actual history of capitalism, of course, has not been that of a genuinely self-regulating system, and the capitalist ‘world system’ has developed on ...

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