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How economics became an interventionist science (and how it ceased to be)

Author

Listed:
  • Rafael Galvão de Almeida

    (Cedeplar-UFMG)

Abstract

The relationship between economics and State has been intimate ever since classical political economy. However, perceptions about the role and size of the State have changed according to the epoch. In other words, economic theory assigned a bigger or a smaller role to the State depending on the political situation. This article analyses the change in economists and economic theory’s perception of the role of the State in the economy, from favoring an interventionist approach from the 1930s to the 1960s, and a liberal approach from 1970s, in order to understand the factors behind this change.

Suggested Citation

  • Rafael Galvão de Almeida, 2019. "How economics became an interventionist science (and how it ceased to be)," Textos para Discussão Cedeplar-UFMG 612, Cedeplar, Universidade Federal de Minas Gerais.
    • Handle: RePEc:cdp:texdis:td612
    as

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    File URL: https://www.cedeplar.ufmg.br/pesquisas/td/TD%20612.pdf
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    References listed on IDEAS

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    Keywords

    theory of economic policy; economic planning; liberalism; neoliberalism;
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