CIAO DATE: 03/02

Critical Review

Summer–Fall 1999 (Vol.13 Nos.3–4)

The Reproving of Karl Polanyi

By Santhi Hejeebu and Deirdre McCloskey

Abstract

Karl Polanyi's The Great Transformation has had enormous influence since its publication in 1944. In form, this influence has been salutary: Polanyi targets one of the main weaknesses of modern economics. But in substance, Polanyi's influence has been baneful. Mirroring the methodological blindness he criticizes, Polanyi insists on the all-or-nothing existence/nonexistence of laissez faire–and on its all-or-nothing goodness/badness.