Neoliberalism refers to the resurgence of free market ideas that characterized classical liberalism in the 19th century. It is based on the idea of economic freedom and limited government involvement in economic interactions between individuals.

Neoliberalism is very similar to classical liberalism. Both ideologies believe in privatization, deregulation, globalization, free trade, and limited government. However, neoliberalism differs in two key aspects. First of all, the idea covers the belief that monetary policy should be governed by a central bank. That means the central bank can decide how much money is in circulation and at what the interest rates should be.

Second of all, the idea covers the belief that the private charity is no longer sufficient to support the poor. It is therefore believed that government welfare is necessary, although in a far more limited amount than we see present today.