Chapter 4

Liberalism 

Quizzes 

Test your knowledge with the Chapter 4 quiz! 

Question 1

According to Keynesian theory, the “liquidity trap” occurs when:

Interest rates are too low

There is a high level of inflation

Consumers lack confidence

Countries are involved in tariff wars

None

Question 2

Ruggie’s “embedded liberal compromise refers to what post WWII policy approach:

Low interest rates and high liquidity

Using the GATT to liberalize trade

Ensuring that domestic politics shies away from radical alternatives

Insulating economies from external shocks through social welfare programs

None

Question 3

Choose the levels of Putnam’s 2 level bargaining model:

Individual leader negotiations

Domestic political bargaining

International negotiations

International regimes

Question 4

David Ricardo is associated with the theory of , essential to liberal trade theory.

Question 5

Public choice theorists are most concerned about the influence of .

Question 6

The original theorist behind embeddedness was .

Question 7

The essential challenge in prisoner’s dilemma is the inability to or .

Question 8

Monetarists see government spending and taxation as the main tools for reducing inflation.

TRUE

FALSE

None

Question 9

Neoliberals promote an active state

TRUE

FALSE

None

Question 10

Endogenous growth theories focus on investments in R&D as a source of competitiveness.

TRUE

FALSE

None

Time’s up

Watch, Listen, Read, and Explore 

This content includes videos, podcasts, articles, readings, and other resources to help you understand and explore the content covered in the chapter. Most readings are freely available, although anything marked with an asterisk may require institutional log-in (e.g., through your university). Freely available data sources are also included to explore and further research. 

Videos 

• See Lecture Videos 
• Damon Silvers lecture on Neoliberalism: https://www.youtube.com/watch?v=hLtkJ-AgLuY  
• Commanding Heights video (PBS): http://www.pbs.org/wgbh/commandingheights/ 
• Jessica Blankshain, Naval War College, on 2-level games: https://www.youtube.com/watch?v=S3molD–yEA  

Podcasts 

• Global Dispatches podcast, https://www.globaldispatches.org/  
• Undercurrents, Chatham House podcasts, https://undercurrents.libsyn.com/  

Readings 

• Adam Smith, https://www.adamsmithworks.org/  
• Liberal Perspectives on the Global Political Economy (Darel E. Paul, Oxford Research Encyclopedia, International Studies):  
• https://oxfordre.com/internationalstudies/display/10.1093/acrefore/9780190846626.001.0001/acrefore-9780190846626-e-32  
• https://doi.org/10.1093/acrefore/9780190846626.013.32 
• Liberalism, Emily Gilbert, International Encyclopedia of Human Geography:  
• https://www.sciencedirect.com/science/article/pii/B9780081022955106675  
• https://doi.org/10.1016/B978-0-08-102295-5.10667-5 
• Summary of Keynes’ contributions, IMF: https://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm  
• International regimes, Eric Brahm: https://www.beyondintractability.org/essay/international_regimes  
• Free markets and conflict (One of the Most Famous Ideas in Economics is Wrong, Jacob Soll): https://www.politico.com/news/magazine/2022/10/05/free-markets-dont-buy-peace-00060236  
• The limits of free markets (The True Cost of the ‘Free’ Market, Oreskes and Conway): https://time.com/6258540/true-cost-of-the-free-market/  
• Prisoner’s dilemma (The Decision Lab): https://thedecisionlab.com/reference-guide/psychology/prisoners-dilemma  
• US-Afghan Taliban negotiations as a 2 level game (simulation), (Bargaining Across Levels: Divide and Conquer, Will Selber): https://thestrategybridge.org/the-bridge/2017/8/31/divide-and-conquer  

Selected Sources of Free Data 

• National Bureau of Economic Research (NBER), Business cycles: https://www.nber.org/research/business-cycle-dating  
• Open ICPSR: Uncertainty and Business Cycles Replication Files (Ludvigson): https://www.openicpsr.org/openicpsr/project/110803/version/V1/view