Historical and institutional economics 1
COMPARING EUROPE ECONOMY DURING THE POST WW2 PERIOD, AND THE
MODERN ECONOMIC POLICIES
by Student's Name
Class/Course/Code
Professor's Name
University/School
City, State
Date
, Historical and institutional economics 2
Abstract
The exploration examines economic structures adopted in two contrasting periods; Europe after
the second world and modern economic policies adopted in western economies. The study begins
by introducing the concept of economic structure. Critical concepts of economic policies during
the two periods are explored, with a highlight of notable occurrences. Further, the study
examines the existing literature on the topic to shed more insight on the contrast. The exploration
is guided by a hypothesis arguing that economic policies adopted during the two periods are
preordained to realise economic dominance. Three relevant theories to the topic have been
discussed, which are; Structural change theory, neoliberal theory, and public choice theory. The
post-WW2 period saw governments adopt structural change theory by investing in
industrialisation; this was followed by the neo-liberal approach, where the government opted to
be less controlling. Modern economic policies are based on the public choice theory of
development, where the government in power act according to a section of the population's
interest. The exploration concludes that economic policies in post-WW2 achieved economic
supremacy. Nevertheless, modern economic structures have failed to offer the western
economies the level of dominance enjoyed in the past. Contrariwise, western economies are
unable to sustain growth while they have plunged into vast public debt.
COMPARING EUROPE ECONOMY DURING THE POST WW2 PERIOD, AND THE
MODERN ECONOMIC POLICIES
by Student's Name
Class/Course/Code
Professor's Name
University/School
City, State
Date
, Historical and institutional economics 2
Abstract
The exploration examines economic structures adopted in two contrasting periods; Europe after
the second world and modern economic policies adopted in western economies. The study begins
by introducing the concept of economic structure. Critical concepts of economic policies during
the two periods are explored, with a highlight of notable occurrences. Further, the study
examines the existing literature on the topic to shed more insight on the contrast. The exploration
is guided by a hypothesis arguing that economic policies adopted during the two periods are
preordained to realise economic dominance. Three relevant theories to the topic have been
discussed, which are; Structural change theory, neoliberal theory, and public choice theory. The
post-WW2 period saw governments adopt structural change theory by investing in
industrialisation; this was followed by the neo-liberal approach, where the government opted to
be less controlling. Modern economic policies are based on the public choice theory of
development, where the government in power act according to a section of the population's
interest. The exploration concludes that economic policies in post-WW2 achieved economic
supremacy. Nevertheless, modern economic structures have failed to offer the western
economies the level of dominance enjoyed in the past. Contrariwise, western economies are
unable to sustain growth while they have plunged into vast public debt.
