Markets in the Evolution of Economics

In recent years, scholars from many disciplines have contributed to the literature on the ‘proper’ role of markets, but they often overlook the contribution of many economists who have also called for a broader understanding of the market beyond pricing. This book explores the place of the market in the history of economic thought from the origins of neoclassical economics onwards, and examines what has been written about the role of markets in promoting cooperation and trust.

The first part of the book explores the debate about markets among those British economists who shaped neoclassical economics. Two eras are distinguished, each with its own story of the market. The first era, from Henry Sidgwick to Alfred Marshall and from the laissez-faire approach to Keynes’ interventionist policies. The second era highlights the scarcity and efficiency- approach of Philip Wicksteed and Lionel Robbins, which laid the groundwork for the neoliberalism of Hayek and Friedman. The second part of the book explores the possibility of a new story of the market after fundamental beliefs about the market have been questioned, not least by the excesses and drawbacks of the neoliberal market. Clues to such a story may be found in efforts to expand on the basic ideas of analysis – such as human agency, the context and driving forces of economic action – which challenge foundational elements of Robbins’ scarcity approach. The book concludes by venturing into the contours of a newly evolving story of the market.

This book will be essential reading for historians of economic thought and political economy who are interested in changing ideas about the role of the market.