Abstract

As well known, it is the neo-classical economics characterized by the contrastive market view to the Keynesian economics and the yet more thoroughgoing anti-Keynesians such as F. A. Hayek or M. Friedman that have been theoretically underpinning the deregulation policies since 1980s. On the basis of the logic of self-regulating market, they severely limit the functions of government. We call their standpoint the Market Foundationalism. This ideology, although broadly accepted at present, has theoretical flaws; the optimism about market failures and the implicit assumption of the Say’s law. Because of these flaws, the Market Foundationalism can not be an adequate guiding principle to the future deregulation policies. This paper is an attempt to explore the right direction of the future deregulation policies thorough the clarification of the flaws of the Market Foundationalism.