The evolution of the regulatory function of the state in the economy and the ‘invisible hand’ of the market

Abstract

The paper presents the evolution of economic thought from its birth in ancient Eastern societies till present day, in terms of different approaches to property; the need of laws; state intervention and regulations. We review major economic theories within the historical context in which they appeared to arrive at arguments in favour of or against state intervention in the economy of a nation, in contrast to the effects produced by the ‘invisible hand’ of the market.