The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • William Easterly
Reference work entry


The passion that surrounds the vague term ‘globalization’ is best seen as a proxy for the long-standing debate about free-market capitalism. The zero-sum mindset, the difference between Pareto superiority and common norms of fairness, and the belief that all outcomes are caused by an intentional agent often cause communication problems between non-economists and free-market economists, who themselves often exaggerate what ‘free-market reforms’ can accomplish and endorse overly ambitious programmes of change (‘shock therapy’), underestimating problems of transition and the second best. Economists could try to understand the protests against ‘globalization’ rather than dismissing them out of hand.


Anti-capitalism Asian miracle Banking crises Business networks Calhoun, J. C. Carlyle, T. Contract enforcement Creative destruction Development economics Dismal science Economic growth Financial liberalization Financial regulation Gains from trade Globalization Inequality International trade Invisible hand Lenin, V. I. Outsourcing Poverty Poverty alleviation Reform consultants Second best Shock therapy Slavery Spontaneous order Structural adjustment Stylized facts Total factor productivity Washington Consensus 

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Authors and Affiliations

  • William Easterly
    • 1
  1. 1.