Editing Neoliberalism (section)

== Traditions ==
=== Austrian School ===
{{Austrian School sidebar}}
The [[Austrian School]] is a school of economic thought originating in late-19th and early-20th century [[Vienna]] with a strong focus around the faculty of the [[University of Vienna]]. It bases its study of economic phenomena on the interpretation and analysis of [[methodological individualism|the purposeful actions of individuals]].<ref>Carl Menger, Principles of Economics, online at https://www.mises.org/etexts/menger/principles.asp {{Webarchive|url=https://web.archive.org/web/20140914004206/https://www.mises.org/etexts/menger/principles.asp |date=2014-09-14 }}</ref><ref>{{cite encyclopedia|title=Methodological Individualism |url=http://plato.stanford.edu/entries/methodological-individualism/ |encyclopedia=[[Stanford Encyclopedia of Philosophy]] |access-date=May 2, 2016}}</ref><ref name="Mises_Action">{{cite book |first=Ludwig von |last=Mises |author-link=Ludwig von Mises |title=[[Human Action]] |page=11 |quote=r. Purposeful Action and Animal Reaction}}</ref> In the 21st century, the term has increasingly been used to denote the free-market economics of Austrian economists [[Ludwig von Mises]] and [[Friedrich Hayek]],<ref>{{Cite book |url=https://www.elgaronline.com/abstract/9781786433589/chapter02.xhtml? |title=A Research Agenda for Neoliberalism |last=Birch |first=Kean |publisher=Elgar Research Agendas |year=2017 |isbn=9781786433589 |pages=13–24}}</ref><ref name="Skousen">{{cite book |first=Mark |last=Skousen |author-link=Mark Skousen |title=Vienna and Chicago: Friends or Foes? A Tale of Two Schools of Free-Market Economics |publisher=[[Capital Press]] |date=2005 |isbn=0895260298}}</ref><ref>{{Cite web |url=https://www.britannica.com/topic/Austrian-school-of-economics |title=Austrian school of economics |website=Encyclopaedia Britannica|date=15 December 2023 }}</ref> including their criticisms of government intervention in the economy,<ref>{{Cite web |url=https://www.progress.org/articles/austrian-economics-explained |title=Austrian Economics Explained |last=Fred |first=Foldvary |date=April 12, 2015 |website=Progress}}</ref> which has tied the school to neoliberal thought.<ref>{{cite book |last1=Foucault |first1=Michel |author1-link=Michel Foucault |date=1978 |title=The Birth of Biopolitics: Lectures at the Collège de France, 1978–79 |publisher=[[Palgrave Macmillan]] |url=https://archive.org/details/birthbiopolitics00fouc_981 |url-access=limited |isbn=978-1-4039-8654-2 |page=[https://archive.org/details/birthbiopolitics00fouc_981/page/n97 79] |quote=What is the nature of today's liberal, or, as one says, neo-liberal program? You know that it is identified in two main forms...a series of persons, theories, and books pass between these two forms of neo-liberalism, the main ones referring to the Austrian school broadly speaking, to Austrian neo-marginalism, at any rate, to those who came from there; like von Mises, Hayek, and so on.}}</ref>{{sfnp|Stedman Jones|2014|p=3}}<ref>{{Cite news |url=https://neweconomics.org/2018/09/markets-became-masters |title=How Markets Became Masters: The Neoliberal Roots of Deregulation |last1=Van Lerven |first1=Frank |date=September 7, 2018 |work=[[New Economics Foundation]] |last2=Welsh |first2=Margaret}}</ref><ref>{{Cite magazine |url=https://www.spiked-online.com/2019/03/22/the-truth-about-neoliberalism/ |title=The truth about neoliberalism |last=Mullan |first=Phil |date=March 22, 2019 |magazine=[[Spiked (magazine)|Spiked]]}}</ref>

Economists associated with the school, including [[Carl Menger]], [[Eugen Böhm von Bawerk]], [[Friedrich von Wieser]], [[Friedrich Hayek]], and [[Ludwig von Mises]], have been responsible for many notable contributions to economic theory, including the [[subjective theory of value]], [[marginalism]] in price theory, Friedrich von Wieser's theories on [[opportunity cost]], Eugen von Böhm-Bawerk's theories on time preference, the formulation of the [[economic calculation problem]], as well as a number of criticisms of [[Marxian economics]].<ref>{{cite book |first=Joseph A. |last=Schumpeter |title=History of economic analysis |publisher=[[Oxford University Press]] |date=1996 |isbn=978-0195105599}}</ref><ref>{{Cite book |url=https://archive.org/details/hayekcoordinatio0000unse/page/94 |title=Hayek, Co-ordination and Evolution: His Legacy in Philosophy, Politics, Economics and the History of Ideas |last1=Birner |first1=Jack |last2=van Zijp |first2=Rudy |date=1994 |publisher=[[Routledge]] |isbn=978-0-415-09397-2 |location=London, New York |page=[https://archive.org/details/hayekcoordinatio0000unse/page/94 94]}}</ref> Former [[Federal Reserve System|Federal Reserve]] Chairman [[Alan Greenspan]], speaking of the originators of the School, said in 2000 that "the Austrian School have reached far into the future from when most of them practiced and have had a profound and, in my judgment, probably an irreversible effect on how most mainstream economists think in [the United States]".<ref>Greenspan, Alan. "Hearings before the U.S. House of Representatives' Committee on Financial Services." U.S. House of Representatives' Committee on Financial Services. Washington D.C.. 25 July 2000.</ref>

=== Chicago School ===
{{Chicago school sidebar|expanded=movements}}
The [[Chicago school of economics]] is a [[Neoclassical economics|neoclassical]] school of thought within the academic community of economists, with a strong focus around the faculty of the [[University of Chicago]]. Chicago [[macroeconomic]] theory rejected [[Keynesianism]] in favor of [[monetarism]] until the mid-1970s, when it turned to new classical macroeconomics heavily based on the concept of [[rational expectations]].<ref name=ElgarComp>{{cite book |last=Emmet |first=Ross |title=The Elgar Companion to the Chicago School of Economics |date=2010 |publisher=Edward Elgar Publishing Ltd. |isbn=978-1840648744 |page=133 |display-authors=etal}}</ref> The school is strongly associated with University of Chicago economists such as [[Milton Friedman]], [[George Stigler]], [[Ronald Coase]] and [[Gary Becker]].{{sfnp|Mirowski|Plehwe|2009|p=37}} In the 21st century, economists such as [[Mark Skousen]] refer to [[Friedrich Hayek]] as a key economist who influenced this school in the 20th century having started his career in Vienna and the Austrian school of economics.<ref name="Skousen"/>

The school emphasizes non-intervention from government and generally rejects regulation in markets as inefficient, with the exception of the regulation of the money supply by central banks (in the form of [[monetarism]]). Although the school's association with neoliberalism is sometimes resisted by its proponents,<ref name="ElgarComp" /> its emphasis on reduced government intervention in the economy and a ''[[laissez-faire]]'' ideology have brought about an affiliation between the Chicago school and neoliberal economics.<ref name="FPIF-20042"/><ref name=Biglaiser>{{cite journal |last=Biglaiser |first=Glen |title=The Internationalization of Chicago's Economics in Latin America |journal=[[Economic Development and Cultural Change]] |date=January 2002 |volume=50 |issue=2 |doi=10.1086/322875 |pages=269–86 |jstor=322875 |s2cid=144618482}}</ref>

=== Washington Consensus ===
{{Main |Washington Consensus}}
{{See also |Structural adjustment}}
The Washington Consensus is a set of standardized policy prescriptions often associated with neoliberalism that were developed by the [[International Monetary Fund]] (IMF), the [[World Bank]], and the [[US Department of Treasury]] for crisis-wracked developing countries.<ref>{{Cite book |last1=Serra |first1=Narcís |url=https://growthlab.cid.harvard.edu/files/growthlab/files/serra8.pdf |title=The Washington Consensus Reconsidered: Towards a New Global Governance |last2=Spiegal |first2=Shari |last3=Stiglitz |first3=Joseph E. |publisher=[[Oxford University Press]] |year=2008 |isbn=978-0199534098 |editor1-last=Serra |editor1-first=Narcis |location=Oxford |pages=3–30 |editor2-last=Stiglitz |editor2-first=Joseph E. |archive-url=https://web.archive.org/web/20191122122944/https://growthlab.cid.harvard.edu/files/growthlab/files/serra8.pdf |archive-date=November 22, 2019}}</ref><ref>{{Cite news |last1=Birdsall |first1=Nancy |last2=Fukuyama |first2=Francis |date=April 2011 |title=The Post-Washington Consensus |work=[[Foreign Affairs]] |url=https://www.foreignaffairs.com/articles/2011-02-16/post-washington-consensus |url-status=live |access-date=July 23, 2020 |archive-url=https://web.archive.org/web/20200705195642/https://www.foreignaffairs.com/articles/2011-02-16/post-washington-consensus |archive-date=July 5, 2020}}</ref><ref>{{cite web |last1=Hurt |first1=Stephen R. |title=Washington Consensus |url=https://www.britannica.com/topic/Washington-consensus |website=Encyclopædia Britannica |access-date=July 8, 2019}}</ref> These prescriptions, often attached as conditions for loans from the IMF and World Bank, focus on market [[liberalization]], and in particular on lowering [[barriers to trade]], controlling [[inflation]], privatizing [[state-owned enterprise]]s, and reducing government budget deficits. [[John Williamson (economist)|John Williamson]], a British-born economist defined the [[Washington Consensus]] by making in 1989 10 rules that were imposed by the World Bank, the International Monetary Fund and the US government on developing nations.<ref name=Williamson2002>Williamson J. (2002). [https://piie.com/commentary/speeches-papers/did-washington-consensus-fail ''Did the Washington Consensus Fail?'']</ref> He came to strongly oppose the way those recommendations were actually imposed and their use by neoliberals.<ref name = NYT>{{cite news|title = John Williamson, 83, Dies; Economist Defined the 'Washington Consensus'|url = https://www.nytimes.com/2021/04/15/business/economy/john-williamson-dead.html|last = Risen|first = Clay|date = April 15, 2021|access-date = April 19, 2021|work = [[The New York Times]]}}</ref>

=== Geneva School ===
Historian [[Quinn Slobodian]] proposed in 2018 the existence of a so-called Geneva School of economics to describe a group of economists and political economists who gravitated in the 1920s and 1930s around the [[Geneva Graduate Institute]], and the [[Geneva]]-based [[General Agreement on Tariffs and Trade]] (GATT) and [[League of Nations]]. The particular strand of political philosophy revolved around renowned economists such as [[Friedrich von Hayek]], [[Wilhelm Röpke]], [[Jacob Viner]], as well as [[Gottfried Haberler]].<ref>{{Cite web |last=Buliamti |date=2024-11-19 |title=OTR—Neoliberalism—A Creative Destruction Disease |url=https://cospolon.substack.com/p/otrneoliberalisma-creative-destruction?utm_campaign=post&utm_medium=web |access-date=2024-12-14 |website=Cospolon}}</ref><ref name="A New Narrative for Neoliberalism">{{Cite web |title=A New Narrative for Neoliberalism |url=https://www.aspeninstitutece.org/article/2018/new-narrative-neoliberalism/ |access-date=2024-12-14 |website=Aspen Institute Central Europe |date=November 10, 2018 |language=cs}}</ref><ref name="Klabbers 369–371">{{Cite journal |last=Klabbers |first=Jan |date=2020-02-01 |title=Globalists: The End of Empire and the Birth of Neoliberalism |url=https://academic.oup.com/ejil/article/31/1/369/5882067 |journal=European Journal of International Law |volume=31 |issue=1 |pages=369–371 |doi=10.1093/ejil/chaa022 |issn=0938-5428}}</ref> Slobodian describes them as "ordo-globalists" who promoted the creation of global institutions to safeguard the unimpeded movement of capital across borders.<ref name="Klabbers 369–371"/><ref>{{Cite web |title=Neoliberalism's World Order |url=https://www.dissentmagazine.org/article/neoliberalism-world-order-review-quinn-slobodian-globalists/ |access-date=2024-12-13 |website=Dissent Magazine}}</ref> He argues the school combined the "Austrian emphasis on the limits of knowledge and the global scale with the German ordoliberal emphasis on institutions and the moment of the political decision."<ref name="A New Narrative for Neoliberalism"/><ref>{{Citation |last1=Boos |first1=Tobias |title=Post-neoliberalism |date=2023-10-17 |work=Forced migration |pages=492–498 |url=https://doi.org/10.4337/9781800372122.ch103 |access-date=2024-12-13 |publisher=Edward Elgar Publishing |isbn=978-1-80037-212-2 |last2=Brand |first2=Ulrich|doi=10.4337/9781800372122.ch103 }}</ref>