Economic flexibility:a structural analysis

Economic flexibility is much discussed in the academic literature but has no agreed definition. In neoclassical economics, a flexible economy can be secured only by removing structural rigidities that block relative price movements and hamper the operation of markets – social structures are seen as a threat to flexibility. The current chapter criticises this neoclassical view and proposes a structural approach that acknowledges the importance of social structures for adjustments in all economic arrangements, including markets. If structures take varied forms that may enhance as well as restrict human agency, then they are readily compatible with flexibility.