Adam Smith, who is regarded as the father of economics. Focus on a free market system work. The invisible hand will lead to an efficient allocation of resources. The important role that the state is divided into three areas: (1) the protection of foreign aggression (2) maintaining the peace and order of society. Care related to the protection of people under their rule (3) creation of infrastructure. The private sector can not do so in this view, the state will have a greater role on the economy in modern economics. Given the importance of the state in managing the economy. Under the market system The state has a role in building institutions. The market system works well. Such as the proprietary ownership. The regulation, market supervision and exchange. And to intervene when the market fails, the work is not complete (Stiglitz J. 2000 pp. 76-89) as natural monopolies (Natyral monopoly) to external effects. (Externality) economists that a market system, in fact, does not happen perfectly. The state must have a strong role to be effective , considering the sufficiency and economic management. The vertical theories of economics. It has concluded that Economic management is not able to use market mechanisms alone requires an effective government. The state must make the markets work. And fix the failure of the market system is based on the sufficiency economy philosophy. Pointed out that The state must have a social role To create a society with sufficient Lange and immunity is a deeper role than to make the market work on the economics mainstream. If you look at each key aspect is the need to balance the economic management a) take into account the economic goals of the three aspects mentioned above, b) eliminate the imbalance in the areas of economy, c) the system. will make a modest The Rationalist Society of the State must have a system of macroeconomic management. Need to focus on stability and risk management. Without looking too optimistic. So that the economy can not support the change. Flexible support risk will occur in the future sufficiency suggests that. The implementation of this philosophy An important condition is The state must have good governance, good management that is to make the public sector more efficient. Liability has been like transparency by the public must be involved , the state itself must be self-sufficient. Project and state measures Modesty does not create a The No Lange Investment and government debt must not exceed two and taking into account the long-term effects. If the decision of the State Lange. The state must have good information. Studies have planned to put good policy. People in government need to be educated. A better understanding of the problems of the country. Which links to the political system as well.
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