The political economy of capitalism
By: Bruce R. Scott
Contributors: Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 07-037; Working paper (Harvard Business School. Division of Research) -- 07-037
Publisher: Division of Research, Harvard Business School
Published: 2006
Place of publication: Boston]
Language: eng
Number of pages: 28
Description: Capitalism is often defined as an economic system where private actors are allowed to own and control the use of property in accord with their own interests, and where the invisible hand of the pricing mechanism coordinates supply and demand in markets in a way that is automatically in the best interests of society. Government, in this perspective, is often described as responsible for peace, justice, and tolerable taxes. This paper defines capitalism as a system of indirect governance for economic relationships, where all markets exist within institutional frameworks that are provided by political authorities, i.e. governments.
Notes: Includes bibliographical references.