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Neo-liberal economics maintains that the 'deregulated' or 'free' market, or Anglo-US form, is the most effective and that consequently it will gradually become dominant.1 Second, is economic 'globalization' in effect a process of 'natural selection' by which the less efficient 'species' are eradicated and replaced by a single genus that resembles the liberal market type?
National currencies are evaluated in terms of their government's conformity to neo-liberal economic preferences - low levels of government spending, especially on social welfare, low taxation, flexible labour markets, privatization and market deregulation.
Aside from the enormous complexity of the question it is, however, not one that that can be answered with any certainty, because whatever the outcome of the 'battle of the systems', it will not be the result of any single pure economic logic of efficiency as neo-liberal economics implies.
Such is the hegemony of neo-liberal economics that it is believed that the price mechan- ism can be employed to resolve these 'externalities'.
7 It has been suggested that the hegemony of neo-liberal economic analysis in the European Commission imparts a bias towards the liberal-market model in any restructuring of economic institutions in the EEC.
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