The Third Way A possible economic government to overcome the economic crisis

The present economic theories have not been able to prove their sustainability over time, which entitles us to propose a new approach: a free market, yet regulated by public institutions. At the basis of the free market lie a series of rules, sometimes even customs which assure its unperturbed movement. The complete lack of rules is an arbitrariness which leads to disorder and chaos. In this economic context, "the invisible hand" seems incapable to regulate itself naturally, because people are not always rational in their choices, but more guided by "animal spirits". The solution that we plead for and that should be considered as an efficient management is a social neoinstitutional economy (SNE) which turns the state into an "organizer" of the whole system of rules, an independent institution from the governmental power, but still capable of organizing the mechanisms of the market as a direct result of the human actions. Personal freedoms become essential for the outcome of the progress. We may only overcome the economic crisis if we change our vision upon economy and consider the SNE a necessity, not an alternative. (C) 2014 The Authors. Published by Elsevier Ltd.