More Powerful Market and More Effective Government in Resource Allocation

The relationship between government and the market is an issue constantly discussed in economics. A review of the history of economic thoughts shows the vicissitude of trends of thoughts on this issue: from the early idea of free market economy to the rise of interventionism during the Great Depression of the 1930s, to the neoliberalism that advocates a return to the free market and strong individualist stimulation in the changing social trends of thoughts in the 1970s and 1980s, to the rise of new interventionism that emphasizes the necessity of government intervention in recent years, especially after the new round of global financial crises.