e-journal
Critical political economy and the role of institutions
The article charts the continuing attempt to breathe fresh life into the original Hall
and Soskice distinction between liberal market economies (LMEs) and coordinated
market economies (CMEs). It surveys the critique of that original formulation from
within the dominant ‘varieties of capitalism’ paradigm, and the recent attempt
by Wolfgang Streeck to replace the LME-CME focus with a new institutionalist
understanding of capitalism and its varieties. That move ‘to bring capitalism back
in’ is welcome but inadequate, acting only as a beachhead out of which we now
need to break, armed with a revitalised sense of the importance of Marxism as
a theoretical framework with which to understand capitalist dynamics, capitalist
institutional variations and capitalist contradictions.
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