Neoliberalism: Oversold? Finance & Development, June 2016, Vol. 53, No. 2 Jonathan D. Ostry, Prakash Loungani, and Davide Furceri

“Instead of delivering growth, some neoliberal policies have increased inequality, in turn jeopardizing durable expansion. Milton Friedman in 1982 hailed Chile as an “economic miracle.” Nearly a decade earlier, Chile had turned to policies that have since been widely emulated across the globe. The neoliberal agenda—a label used more by critics than by the architects of the policies—rests on two main planks. The first is increased competition—achieved through deregulation and the opening up of domestic markets, including financial markets, to foreign competition. The second is a smaller role for the state, achieved through privatization and limits on the ability of governments to run fiscal deficits and accumulate debt.­”