The method that Polanyi utilizes may be described as historical process tracing. He uses within-case empirical evidence to understand the effects of political, economic, and social factors that enable his theory and analysis. Polanyi for the most part focuses on the development of the market economy in England, and in his description of larger events, routinely inspects domestic happenings in England such as legislation, migration trends, market conditions, and social conditions. Doing so he combines institutional and cultural methods in his pursuit of a holistic description of salient factors which led to the rise and fall of the market economy in England.

Within his method, Polanyi also utilizes writings from contemporary thinkers and politicians as a way to illustrate popular sentiments regarding policy, illustrating cause and effect when explaining how the market economy came into being, was operationalized throughout the world, and its downfall. He also comparatively employs other states (greater Europe, African States, US) to illustrate how the market economy behaved in conjunction with society, businesses, governments, etc. in other situations differently or similarly. This also allows Polanyi to discuss “primitive” societies (e.g. Trobriand Islands) where the market economy was not operational, and to detail the effects that occurred due to expansion in international trade or colonization which introduced the market economy.

In addition to the above, Polanyi details the emergence and change in state and social institutions and mechanisms which occurred alongside the revision of the economic system. He goes into great length with explanations of the commodification of labor, implementation of the central banking system, free trade, etc.

In my personal view, this method is quite unique and very well suited to Polanyi’s need of explaining massive phenomena. It allows the freedom to look at granular details, incorporating culture, institutions, rationality but gives the freedom to explain effects that occurred on massive scales. The book serves as an orienting tool to economic thought as well as a critique of capitalism.