I mentioned this in the other thread...
Liberty, historically has meant specifically '
freedom from tyranny'. It simply meant that a people had self-rule, instead of being ruled under a despot, and that its government allowed some degree of civil rights for its citizens.
'Freedom' as a concept is much broader and can apply to policies created under that type of self-government. Economic policies that are laissez-faire are also more 'free', but it doesn't mean people under those policies have more liberty. A government that creates tariffs isn't restricting anyone's liberties. Liberal laws on social policies, like having a right to abortions, is also more 'free', but doesn't mean people have more liberty. Universal suffrage is also an example of something that makes for a freer society.
Freedom can also refer to social institutions more generally, and not just government policy. The more social mobility there is the more 'free' the society is. The sexual revolution also made society more 'free', since today we have less social conventions.
Dictionary.com agrees,
http://dictionary.reference.com/browse/liberty
lib·er·ty   [lib-er-tee] Show IPA
–noun,plural-ties.
1. freedom from arbitrary or despotic government or control.
2. freedom from external or foreign rule; independence.