Liberal thought is based, at a philosophical level, on the concept of maximising personal and individual liberty. Stemming from a critique of medieval society, which was defined by a general lack of personal property, individual and citizen rights, and mostly feudal power relations, liberals proposed a series of radical new positions regarding the individual and society. Liberal thought has been pivotal in enabling capitalism -- based on concepts such as personal property and free market paradigms. As liberal thought proliferated and became standard across Europe and North America, it soon was transferred onto considerations at the international level. First promoted by American president Woodrow Wilson, and then subsequently re-enforced through the Bretton Woods institutions after the end of the Second World War, liberalism promotes beliefs relying on (1) shared security; (2) open diplomacy; and (3) free international trade.
Liberals believe that international institutions foster trust among states and therefore facilitate international cooperation. Institutions help to set expectations and constraints on state behaviour as well as provide a diplomatic platform for states to meet, monitor behaviour and negotiate. In doing so, institutions help to facilitate cooperation in areas of mutual interest even under international anarchy and therefore provide a degree of regularity and stability to international relations. The Kantian Paradigm of 'Democratic Peace Theory' has proved to be hugely influential even in contemporary politics, culminating in contemporary American Foreign Policy.