Chapter 2: The Rise of Market Liberalism

Chapter 2 reviews the stagflation episode of the 1970s and in the disinflation, international integration, and market liberalization developments of the 1980s and 1990s. The chapter examines three principal areas of policy change or reorientation: the search for an answer to inflation, the deregulation of labor markets, and attempts to limit the growth of government expenditure and of government debt.