The Constitution of Liberty in the Open Economy: An Austrian Theory of Foreign Trade

Overview

In these heady days of ever increasing globalization it has become vital to question whether governments should be allowed to protect domestic enterprises from foreign competitors.
This book represents a first attempt to provide a new conceptual basis for discussing the cases in which free trade should be the option of choice in trade policy and those in which protectionism should be used. Lüder Gerken expands the economic tool of ordo-liberalism, founded by Walter Eucken and ...

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Overview

In these heady days of ever increasing globalization it has become vital to question whether governments should be allowed to protect domestic enterprises from foreign competitors.
This book represents a first attempt to provide a new conceptual basis for discussing the cases in which free trade should be the option of choice in trade policy and those in which protectionism should be used. Lüder Gerken expands the economic tool of ordo-liberalism, founded by Walter Eucken and developed by Friedrich von Hayek, to make it applicable to foreign trade.
With impressive clarity and ingenuity, Gerken powerfully argues a scientific case for free trade as a best practice solution to the demands of globalization

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Product Details

Meet the Author

Lüder Gerken is Director of the Foundation for Market Economics, Berlin, Germany

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Table of Contents

Introduction Part 1: Does Neoclassical Trade Theory Provide a Justification for Free Trade? 1. The Classical and Neoclassical Free Trade Theory 2. Special Problems of Neoclassical Trade Theory: The assumptions as prerequisites of the free trade postulate 3. General Problems of Neoclassical Welfare Economies 4. Summary Part 2: Do the Functional Conditions of the Market Order Provide a Justification for Free Trade? 5. The Knowledge Problem as a Central Challenge in Economics and Its Neglect in Neoclassical Equilibrium Theory 6. The Aim Neutrality and Rule Dependence of the Market Order 7. Resolving the Knowledge Problem in the Market Order 8. Efficiency as Justification of the Market Order in General and of Economic Policy in Particular 9. Market Order and Policy on International Trade 10. Summary Part 3: The Order of Liberty 11. The Principles of the Order of Liberty 12. Reasons for and Justification of the Order of Liberty as a Social Principle 13. The State in the Order of Liberty 14. 'Freedom' and 'Equality' as Material Claims Against Society 15. Conclusions Part 4: International Trade and Trade Policy in the Order of Liberty 16. The Spheres of Freedom of Market Participants Involved in International Trade 17. Free Trade as an Integral Part of the Order of Liberty 18. Special Trade Restrictions on Goods Markets in the Order of Liberty 19. The Causes of and Possible Approaches to Overcoming Protectionism 20. Summary Epilogue: A tale from days of olde with a sad ending

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