The end of the era of liberalism?

report reporter Mehr, government intervention in Iran’s economy has always been discussed and investigated by experts and policy makers. On one side of the story, some people emphasize these interventions and call it a factor in supporting domestic production, creating employment and reducing dependence on imports.

Critics of government intervention consider policies such as banning or limiting imports and government intervention in the market to be obsolete and against the current economic schools, they believe, The above policies will lead to an increase in prices, a decrease in the quality of products, a decrease in competition in the market, instability of the exchange rate, and an increase in inflation.

The mentioned cases are part of the criticisms of economic experts regarding government intervention in the market. Surveys show that the critics, who often call themselves basketball and economic advisors, seek to induce the proposition that the economy in the world is unordered and the leading economists of the world always They emphasize the freedom of the market.

But is this the reality of the story, and in this day and age, economic opinions are all based on unconditional freedom Does the market emphasize?

Reviews indicate that Alice Amsden and Fedric Mishkin, two prominent economists, despite their differences But they agree on one point: the active role of the government in Economy.

Both of these economists believe that the government can and should intervene to improve the performance of the economy and social welfare; However, the method and intensity of this intervention are different in the views of these two economists.

Alice Amsden: Government as Development engineer

Alice Amsden, focusing on developing countries, firmly believes in the role of the government in guiding and engineering the economic development process. By carefully studying East Asian countries, especially South Korea, he showed that the government can contribute to rapid and sustainable economic growth by adopting active industrial policies, supporting domestic industries, investing in infrastructure and training the workforce.

This view is in opposition to economic liberalism because it emphasizes the role of the market in the path of economic development.

In Amsden’s view, the government should not only intervene in the markets, but should also play a leadership role. in fact, according to his opinion, the active intervention of the government is not only not an obstacle to economic growth, but is also considered a key element of success in this direction.

He believes that markets do not always work optimally and in many cases, the government must intervene to eliminate market failures and create the right conditions for the growth of industries. .

Undoubtedly, one of the most important achievements of Omsden, the criticism of theories Neoclassical was a development economy that emphasized the role of the free market in development. He showed that these theories are not enough to explain the success of East Asian countries in industrialization, and in many cases, it was these governments that played a central role in this success by adopting active industrial policies.

The professor of Harvard University and MIT also emphasized on learning and acquiring knowledge in the process of industrial development, he believed that the government should support research and development and create educational centers. and providing learning opportunities for the workforce will help to improve the level of knowledge and technology in the country, a view that is in conflict with liberalism, because according to this theory, the market emphasizes the allocation of resources and innovation, and the role of the government in this field is limited. is.

Federik Mishkin; The government as a regulator and stabilizer

Frederic Mishkin, although he believes in the efficiency of the market, considers the government’s role in regulating markets and establishing economic stability essential. He believes that the government should help control inflation, reduce economic fluctuations and create a stable environment for investment through monetary and financial policies.

This Columbia University professor, who is known as one of the leading figures in the field of monetary economics, emphasizes the role of the government in providing public goods and regulating imperfect markets.

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He strongly emphasizes the central bank’s role in creating economic stability, he believes that the central bank should use monetary policy tools to achieve goals such as facilitating achieve economic activities.

In the opinion of Mishkin, the central bank is the arm of the government and this institution adopts appropriate monetary policies. , helps in sustainable growth and job creation, of course, he also mentions the independence of the central bank. Mishkin believes that the central bank should be free from political interference in order to adopt its monetary policies independently and based on economic principles.

An examination of the views of this economist shows that he has announced interest rates, open market operations, etc. as some of the central bank’s tools to implement his desired policies.

What is clear, Mishkin believed in the role of the government in correcting inefficiency, he believes The government can help market efficiency by creating appropriate laws and regulations, improving market transparency and supporting competition. Also, although the Columbia University professor did not directly criticize liberalism, he emphasized the active role of the government in the economy, especially policies Polly emphasizes, in fact, it can be inferred that Mishkin does not believe in a pure and complete version of economic liberalism.

Defending the role of the government in the modern economy

Finally it should be said, both prominent economists Amsden and Mishkin believe in the importance of economic stability and the role of the government in maintaining it; Therefore, both can refer to government intervention in the foreign exchange market, especially in special circumstances such as extreme fluctuations in the exchange rate or financial crises.

However, the intensity and type of this interference are different in the views of these two economists. Omsden to some extent to wider and more targeted interventions of the government in the foreign exchange market, such as supporting exports or preventing the entry of capital Speculative, believes.

While Mishkin dwells on short-term and more limited interventions, such as intervention in the currency market to reduce extreme fluctuations. , believes In sum, both Alice Amsden and Federik Mishkin emphasize the active role of the government in the economy.

However, there are fundamental differences in the views of these two economists. Omsden emphasizes the role of the government as a development engineer and driver of the economy, while Mishkin focuses more on The role of regulation and stabilization of the government is believed.

Given the complexity of economic issues and the diversity of countries’ conditions, it is impossible to say which one of these two The view is completely correct. However, the choice between these two views or a combination of them depends on the specific conditions of each country and policy objectives.

Since Iran’s economy is affected by factors such as sanctions, oil price fluctuations, non-collection of foreign exchange revenues, etc., therefore, it is definitely not possible to generalize the opinions of these two prominent economists. But at least it can be understood that in certain economic conditions the government should purposefully enter the market and the economy, so criticism of policies such as bans and restrictions on the import of goods is completely justified, although In order to apply this policy, it is necessary to go through the overview and examine all the related points in detail.

Morasad Shahroudi, researcher in the field of combating economic corruption