This book argues that the ideas of Michel Foucault, often considered the most influential 'post-modernist' thinker, are compatible with an important strain of liberal thought that values open markets, political decentralisation, and limited government. It shows how the respective traditions can be combined into a 'post-modern liberalism' critical of the expanding web of 'pastoral powers' acquired by contemporary welfare-regulatory states. As such, the book offers a highly original synthesis with multiple applications in contemporary public policy.