Heterodox economics

neoclassical economist and there are the heterodox economists’ which covers the nonmainstream views. Although the mainstream economics is the one taught in school, its assumptions are there to achieve a certain outcome. The heterodox economist’s assumptions are based on the fact to eliminate extraneous factors. I believe that heterodox economics will start to be considered more in the world of academics and may take the place of the current mainstream economics. The theories of consumption have

Problem Statement Unemployment is a very important problem that it is not only an economic issue, but it is related to the social and political issues. Increasing the level of unemployment will decrease the level of Keynes’ effective demand that is going to increase the investors’ uncertainty and less investments will take place. As a result, the economy as a whole will move from recession to depression and the unemployment is dramatically increasing. On the other hand, unemployment has a direct

therefore must approach these issues through economic policy. Capitalism and the free market have become an integral aspect of the American way. It is applied to virtually all government decisions, from education to environmental protection, to foreign policy. But, as we know this economic system is a very recent experiment. It would be incredibly shortsighted to view it as the only economic system. Throughout history we have used all different economic systems, and although no one wants to regress

WHAT IS MONEY? HOW IS IT CREATED? Orthodox and Heterodox economics both examine what money is. However, their views are different and, historically, many controversies have existed around money; especially after the global financial crisis. Orthodox economists view money as a medium of exchange that replaced barter. They also view money as a store value; a derivative from the medium of exchange. Heterodox economics support that money is a social unit of account, where credits and debts are measured

economists to economic reforms being incomplete or to their incorrect sequencing. Briefly explain this argument. Focus your briefing note on the reasons advanced particularly by heterodox economists to criticize this argument. The purpose of this note is to briefly examine the different approaches in interpreting the financial crisis by mainstream and heterodox economists. To emphasize the drawbacks in the neoclassical (mainstream) view, and criticize it from the post-Keynesian (major heterodox) viewpoint

Andrei Shleifer, Amartya Sen, and Jean Drèze all try to understand what makes countries rich and what makes them poor. Shleifer thinks that what makes a country rich, and subsequently its people rich, is the free market and the economic success that follows it. Alternately, Drèze and Sen believe that what makes a country rich, a whole country with its entire population, is state intervention and regulation of the economy. This differing on opinion is the fundamental difference in the work by Shleifer

as the main neoliberal agents. The international economic institutions (IMF, Worldbank and WTO), which conducted structural adjustment programmes are often seen as those that imposed these reforms on the developing world. The neoliberal set of policies is often connected to increasing financialisation of the world economy (Fine, 2009). Finance did not only become a greater part of GDP but above all it became more strategically important for economic development. Stock of global financial assets in

operation of market forces lead to a net social welfare loss. Market failure exists when the competitive outcome of markets is not satisfactory from the point of view of society. In economics, market failure is a situation in which the allocation of goods and services is not efficient. That is, there exists another conceivable outcome where an individual may be made better-off without making someone else worse-off.

Neo liberalism can be described as a set of economic policies that are put in place to promote rational self-interest. (Martinez & Garcia, 2014). It describes a movement of control away from the state to corporate control of the market. Many critics of the philosophy called neo liberalism, Thatcherism in the United Kingdom. Martinez and Garcia, 2014 also explain that Liberalism can refer to economic, political and even religious ideas and views, while neo is simply a new type of liberalism put in

“95 per cent of economics is common sense made complicated” (Chang, 2011, p xviii). In his book, 23 Things They Don’t Tell You About Capitalism, Korean economist, Ha-Joon Chang, assaults economic orthodoxy and questions many theories and empirical facts that we take for granted. Written shortly after the ‘credit crunch’ of 2008, Chang argues that this economic crisis was created by the free-market ideology which has been dominant since the 1980s and attempts to remove our "rose-tinted glasses that