The cyclical pattern of State intervention
The present wave of prívatization and the relatíve success of the neoliberal criticism
against the economic role of the state are part of the cyclical character of state intervention.
We are now in the downturn of the cycle. During the upturn state intervention,
measured in terms of nationalization and increase in regulation, is initially successful, but
after some time it runs into increasing distortions. The crisis and the criticism that comes
with the distortions lead to a reduction and particularly to a change in the pattern of state
intervention. But never to a return to L’Etat gendarme dreamed by neoliberals.
JEL Classification: H11.
Keywords: Role of government privatization