It can use some "market-like" devices, but to be efficient it requires universal rules specified by government. But the liberalism that has existed in historic time has been rather more supple, fluid, and evolutionary. I will try to elucidate this point in a moment.
Liberalism is partly an ideal type -- a philosophical construct with knowable boundaries. Josiah Ober is professor of political science and classics at Stanford University.
It stops just short of a systematic critique of a market economy, and it doesn't connect as fully as it might to other progressive constituencies.
Even skeptics lump democracy together with liberalism: in earlythe then President Pervez Musharraf of Pakistan called on Western governments to stop obsessing about democracy, by which he meant: stop focusing on human rights.
Social democracy is not merely a prodigal mutant of liberalism, now free of its youthful socialist indiscretions.