invisible hand

Mark Blaug
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Adam Smith employed the term ‘invisible hand’ twice in his published writings, and a considerable secondary literature has explored the multiple meanings he intended to convey by the use of this metaphor. I argue that, whatever he did mean, he certainly did not mean that competition or the market mechanism promoted efficiency: instead it promoted the growth of income, even for the poor.
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How to cite this article

Blaug, Mark. "invisible hand." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 22 October 2017 <http://www.dictionaryofeconomics.com/article?id=pde2008_I000220> doi:10.1057/9780230226203.0849

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