Watson, Matthew, Ph.D.. (2005) What makes a market economy? Schumpeter, Smith and Walras on the coordination problem. New Political Economy, Vol.10 (No.2). pp. 143-161. ISSN 1356-3467

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Abstract

The tradition of modern political economy is founded upon attempts to show how a market economy of autonomous individuals can function smoothly in the absence of a central authority to coordinate economic activity. This has become known, for obvious reasons, as the coordination problem. As suggested by the title of this article, to confront the coordination problem is to focus upon the question, ‘what makes a market economy?’. In the pages that follow, I argue that the answer to such a question lies not, as we might expect, in the realm of economics, but in that of moral philosophy. In order to sustain this argument, I revisit debates about the essence of the market economy which are to be found in the history of economic thought literature, but which are almost entirely ignored by modern economists.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Politics and International Studies
Library of Congress Subject Headings (LCSH):	Capitalism, Games of strategy (Mathematics), Ethics -- Economic aspects, Economics -- Political aspects
Journal or Publication Title:	New Political Economy
Publisher:	Routledge
ISSN:	1356-3467
Date:	June 2005
Volume:	Vol.10
Number:	No.2
Page Range:	pp. 143-161
Identification Number:	10.1080/13563460500144710
Status:	Peer Reviewed
Access rights to Published version:	Open Access
URI:	http://wrap.warwick.ac.uk/id/eprint/2136

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