In the following paragraph:

Restrictions on capital flows imposed by the borrowing country are often explained as arising from a mistrust of foreigners or a reluctance to let development proceed "too fast," but I think such explanations warrant a Smithian skeptism.

What do the author mean by:

but I think such explanations warrant a Smithian skeptism.

1 Answer 1


First and foremost, skeptism seems to be a misspelling of skepticism. Strange as it may be, it does not seem to be uncommon. Interesting is this link which uses skeptism in the title, but seems to consequently use skepticism throughout the article itself!

According to wikipedia, Adam Smith was a political economist:

He viewed government intervention in the market with great skepticism...yet he was prepared to accept or propose qualifications to that policy in the specific cases where he judged that their net effect would be beneficial and would not undermine the basically free character of the system.

So what the author means is that the mentioned restrictions, no matter how they are commonly explained, should be see with similar skepticism that Adam Smith displayed towards such government interaction.

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