ABSTRACT
Since Adam Smith, an invisible hand has been esteemed as a kernel of economic activity by mainstream economists, who believe that a market can adjust the supply and demand through the price mechanism and allocate resources in an optimal way; therefore, ‘getting the price right’ is essential. Mainstream economists blame past and present state interventions for most economic problems, and their solutions mainly centre on deregulation, free market-oriented reforms and minimizing the economic role of the state to that of a ‘night-watchman’ (Hayek 1941; Niskanen 1973; Krueger 1974; Posner 1975; Peacock 1979; Bhagwati 1982; Lal 1997).
