This chapter focuses on the writings of David Ricardo, John Maynard
Keynes and Friedrich von Hayek - economists whose contributions to the economic
policy debate have been outstanding in real-world economics. Firstly, we present the
proposal of David Ricardo, who addresses, in the 19th century, that international free
trade could be beneficial for all countries. Then, we present Hayek’s theoretical
contribution to economic policy reinforced the free market fundamentalism over
government interventions. Finally, we include Robert Mundell’s contribution to the
study of macroeconomic policy challenges in open economies which clearly predicted
the outcomes of the transformations in exchange rate regimes and global financial
regulation after the 1970s.
Keywords: Free trade, Free market fundamentalism, Open economies.
