1. The neo-liberalism
A thought that defenses the free capitalist system appearing in early 1930s and late in 1970s insisting on Private monopoly capitalism against the state monopoly in economy.

2. Teaching points
First, the revival of neo-liberalism (in the 20th century 70's) 1. historical background 2. Theoretical origin
Second, the basic ideas of neo-liberalism and the main factions 1. Extreme neo-liberalism 2. Moderate neo-liberalism 3. Innovative neo-liberalism
Third, the evaluation of neo-liberalism Rationality and limitations

3. 教学要点 一、新自由主义的复兴（20世纪70年代） 1历史背景 2.理论渊源 二、新自由主义的基本主张与主要流派 1.极端的新自由主义
2.温和的新自由主义
3.创新的新自由主义
三、新自由主义的评价
合理性与局限性

4. the revival of neo-liberalism (in the 20th century 70's)
historical background
First, the revival of the direct cause - failure of Keynesian (凯恩斯)practice. The emergence of government failure - stagnation and high inflation.
Second,Keynesian own shortcomings.
Third, the real cause economic crisis - the consequences of Keynesianism.

5. the revival of neo-liberalism (in the 20th century 70's)
Theoretical Origin of neo-liberalism
____classical economy liberalism (Adam Smith classical economy liberalism).
First, the "natural order" theory of the importance of agriculture .
Second, Adam Smith's "economy man" hypothesis

6. The basic ideas of neo-liberalism and the main factions
A) the main factions of neo-liberalism
the extreme or radical neo-liberal (Hayek (哈耶克)neo-liberalism, Friedman（弗里德曼） modern monetarism)
moderate neo-liberal (Freiburg –弗莱堡faction),
an innovative new freedom Doctrine (rational expectations school).

7. The basic ideas of neo-liberalism and the main factions
(B) the common claims.
First, believing in the self-regulation of the market mechanism.
Second, Affirming the superiority of private enterprise.
Third,being against the intervention of government in social life.
Fourth, advocating to maintain competition in the market, being against the monopoly.
Adhere to the traditional sound fiscal policy and oppose to the welfare state, being against inflation.

8. primary factions - Extreme neo-liberalism
A. Hayek's extreme liberalism advocates.
First, respecting market economy basing on individualism
Second, stress free competition with equal chances.
Third, the being against the planned economy.
(Program mode will lead to economic inefficiency, the political centralization, the truth of the end)
Fourthly, Advocating monetary non-nationalization

9. primary factions - The fundamental ideas of modern monetarism.
First, inflation is a monetary phenomenon, causing a sharp increase in money supply, rather than the rapid increase in production.
the Government has decided to - or can decide - the quantity of money.
Third, the only way to cure inflation,is to slow down monetary growth rate.
Fourth, the development of inflation needs time - in terms of years rather than a monthly basis, to heal inflation also needs time
Fifth, the side-effects of treating inflation is inevitable

10. ideas of The fundamental modern monetarism.
First, advocating free-market economic theory.
Second, controling the money circulation, Restraining inflation.
Third, denying natural rate of unemployment." of “no involuntary unemployment "
Fourth, implement monetary policy of "single rule" .

11. primary factions - Moderate neo-liberalism - Freiburg faction
. First, respecting "social market economy theory."
Second, encourage competition, being against the monopoly.
Third, advocating the world economy integration mode featuring as free trade

12. primary factions - Innovative neo-liberalism
The rational expectations faction (Lucas).
The key assumptions of rational expectations:
People must use all available information to expectat as possible ,rather than the just past inflation
if the forecast keep up with the forecast of economic theory ,that is rational expectations

13. Innovative neo-liberalism-The rational expectations faction.
Lucas’ theoretical point : the public itself can take advantage of their limited information completly, prices and wages were flexible.
This Government and the public can share the same information , they both have the same advantage. In a sense, the advantages of the public may be better than the Government . if the Government's policy is Unreasonable ,they can not deceive the public forever.
As prices and wages were flexible, they believe that market mechanisms can solve the unemployment problem, so there is no need for the Government to interfere.
Therefore, they come to the "ineffective government policies on the" point of view.

14. Innovative neo-liberalism- the basic ideas of public choice theory
A: studying the public choice theory of collective decision-making or political decision-making (economic policies)
B:to explore the reasons for the deep economic problems, involving all aspects of the political process, including the constitutional, legislative, administrative justice

15. Innovative neo-liberalism- the basic ideas of public choice theory
1.The U.S. economy being in trouble due to the failure of the political system rather than the failure of the market system
2. in order to overcome the economic crisis ,we must abandone Keynesian political position to seek treatment from the liberal position recipe for the political system.
3.They suggested that Keynesian economics led to the overly liberal politicians, traditional economists ignore researing the political system . but the existence of Keynesian government makes the lack of "effective democratic government."

16. Innovative neo-liberalism- the basic ideas of public choice theory
3.Public policy decisions should be based on "economic man" basis
in accordance with the "cost - benefit" analysis method to analysis Western democratic political system to produce the "Government failure" .
4. Because the government people also have the "economic man" nature inevitably ,so it has flaws, regardless of public interests may pursue personal interests and the interests of bureaucrats to violate the public interest.
5.Therefore, the amount of challenge to the political system is the root cause of Western economic problems.

17. Innovative neo-liberalism- the basic ideas of public choice theory
3.To change the government's violation of the public interest, We need to rely on system reform to emphase the reform.
Through institutional reform, to establish an effective constraint government behavior, generally known as "System theory" .
Buchanan(布坎南) sought through the “Charter” campaign， for constitutional reform is fundamental.
The contribution of public choice theory is that the "market failure is not the problem to the government to handle it."

18. the evaluation of neo-liberalism
First, the neo-liberalism can not solve the economic crisis in capitalism society.
Second, neoliberalism the factions are for real defense for capitalism system.
Third, the new liberalism and Keynesian has to converge.
Fourth, the new liberalism also has great limitations.