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This book combines the two most important typologies of capitalist diversity. This is possible because all countries with liberal market economies also have liberal welfare states; all countries that coordinate their economy either have a conservative or a social democratic welfare state. Building on this, this book shows how Hall and Soskice's 'Varieties of Capitalism' typology can be combined with Esping-Andersen's welfare regime typology. Drawing on a large dataset of empirical indicators, this book argues that similar historical cultural policy styles forged production systems and welfare arrangements that now follow similar logics within families of countries. It is possible to distinguish 'liberal', 'social democratically coordinated' and 'conservatively coordinated capitalism', because production systems and welfare states form a coherent whole, so that neither of the two aspects can be studied in isolation. Ultimately, this book shows how such a unified typology can explain trajectories of liberalization.