What is the Meaning & Definition of liberalism

Modern form of the classical liberalism which intensifies his stance against the intervention of the State

Neo-liberalism is the most popular and abbreviated term used to designate the neo-classical liberalism, more modern form that exists of liberalism and which are attributed to the State a limited intervention, both in legal and economic.
This current of thought was exposed and diffused by the philosopher, Economist and jurist Austrian Friedrich von Hayek, from the year 1940. Basically promoted the revival of the classic but with a position liberalism more extreme in regards to smooth, State intervention and simply proposed total abstention of the State in economic affairs. He believed that the progress of mankind and the economy is paramount and this should be subordinated to any aspect of life, including politics. The market economy, allowing the free play of supply and demand, it was his main bet and argued that the State should not drive companies if you have them it must privatize them.
For neoliberalism the welfare of society will be given if there is competition in every respect, especially in the economic, because only it will cause lower prices when they are high, or failing that upload them if they are low.
He was also a great critic of the economy that is planned, and socialism, system considered that an authentic scourge at the behest of individual freedoms and that always leads to totalitarianism.
For all his contributions, he was awarded in 1974 with the Nobel Prize in economics.

Committed to freedom and deregulation of market

Meanwhile, in economic terms neoliberalism promotes macroeconomic and technocratic emphasis and considered absolutely counterproductive the excessive intervention of the State, whether on economic issues such as social. On the other hand, argues that the capitalist free market turns out to be the best economic policy to achieve institutional balance and economic growth of the country in question.
In neoliberalism is blindly supported the liberalization of the economy and then promoted a total opening of markets, which becomes in free trade and deregulation of market, two political pillars to impose this current.

Pillars which underpin

There are five pillars that this doctrine promotes and defends: restrictive monetary policy (reducing the money supply or increasing interest rates, thus lowers inflation and there is zero chance of falling into a devaluation), restrictive fiscal policy (price increase on consumption, reduction of public expenditure and reduction of taxes on the income and production, thus is repair bills It encourages investors and growing the effectiveness of the State), liberalization of trade and investment (increases the involvement of actors in the market, increased productivity, take advantage competitive advantages, increase consumption and reduction in the cost of goods and services), privatization (private actors are considered more effective and efficient than the public) deregulation (when there are too many laws causing inhibition of economic activity then, the reduction of these as much as possible will lead to greater economic dynamism).

The importance of privatization

While these pillars as a whole are implemented and ensure the fulfilment of the neo-liberal program, privatization is a fundamental and essential policy on which is covered by this current. As noted already, from neo-liberalism is believed that what is in the hands, i.e., under private management, will be much more efficient and correct than if is under the halo of the State, especially if it is a deficit and corrupt State, and hence little honest when it comes to the management of finance and companies providing a public service to the people. Then, neoliberalism will propose that the participation of the State in what compete the economy is minimal.
This system of thought called those who promote and continue as neo-Liberals.