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This book engages with the foundational tenets of economic theory, primarily targeting economists to reconsider conventional wisdom. It traces deviations from classical theory through abstract argument and controversy, aiming to elucidate significant conceptual misunderstandings underlying economic practice. Furthermore, it references Gesell's contributions to monetary theory, suggesting historical intersections with contemporary economic issues.
2018
More and more often, confidence in the professional qualifications of individuals representing certain occupational groups which formerly were held in high esteem has started to erode. Dismissing scientific evidence and ignoring expert opinion has become a feature of political discourse around alternative truth. In part this is self-inflicted as various statements that are publicized with the aura of academic certainty do not stand up to closer scrutiny. Alas, this applies particularly to economics, which is often held up as the supreme discipline of social sciences. It suffices to take a look on page one of reasonably respectable printed media to recognize how important economics is in contemporary society. In this chapter, we highlight some issues from micro- and macroeconomics that are critical.
Today's Problems in The MInds of The Great Economists, 2021
This book presents the history of economic thought as it relates to today’s most pressing problems, and it emphasizes the critical connection that exists between what may seem cold, unrealistic mathematical economic models, and the quality of everyday life of any citizen of the planet earth. It shows how contemporary developments in neoclassical theoretical models in Welfare Economics, General Equilibrium Theory, Information Economics and Game Theory have created the necessity to integrate the neoclassical theory of free markets and the institutional theory. It argues that while the main goal of economics is to improve human wellbeing in a broad sense, the quality of human life; we should also take into account its second goal, which is to improve the microeconomic efficiency of the system. We should not lose sight of the fundamental contributions of the free markets, and of neoclassical economics which have seriously influenced the digital and financial revolutions that have allowed the ICT Revolution to happen. Individual freedom and creativity are critical for the success of capitalism. But they do not happen in a vacuum, institutions are required. It argues that the future of economic theory and policy will be defined by contributions in three fronts: pure theoretical models of free markets, institutional models, and models capable to integrate the interaction between free markets and institutions in the final determination of the actual economic equilibrium.
Post-Crash Economics, Plurality and Heterodox Ideas in Teaching and Research, 2018
Cambridge Journal of Economics, 2013
In 1987, Greenwald and Stiglitz accused Keynes's summary of the General Theory in chapter 18 of relying upon ‚neoclassical and Marshallian tools‛. A number of contributions have on the contrary emphasized the methodological importance of this chapter, which this paper revisits in the light of A Treatise on Probability. It thereby shows that the notions of cause and dependence used to discuss the relationships between independent and dependent variables of the General Theory are related to the concept of ‚independence for knowledge‛, which concerns logical connections between arguments rather than material connections between events. We demonstrate that such logical connections established in chapter 18 are rediscussed in chapters 19-21, where Keynes allows for probable repercussions between the factors and removes the simplifying assumptions previously introduced. After stressing the methodological continuity this method provides with the analysis of credit cycles in A Treatise on Money, we argue that chapter 18 is an indispensable tool to decode the internal text structure of the General Theory. We thus characterize the latter as a vademecum to the complex economic world, the author providing an analytical method allowing -and requiring -the readers to emulate his efforts to grasp the complexity and interdependence of the economic material.
2011
Companion f o Economics and Philosophy, Edward Elgar (2004), 509+xxii pp., ISBN I-84064-964-x reviewed by Till Griine-Yanoff, Royal Institute of Technology, Dept of Philosophy and the History of Technology, Stockholm DESPITE ITS TITLE, this Companion contains little economics. Rather, it presents topics from the philosophy of economics. The title may still be appropriate, as the philosophy of economics addresses many issues that should be of great interest and importance to economists. However, many authors of this volume seem to understand their project as opposed to economics (or rather, what they call 'mainstream' economics). This is unfortunate. Philosophy of economics is dependent on the science that it purports to be of. It discusses economics' specific epistemic, conceptual and normative problems, and intends to contribute to their solution or at least clarification. Naturally, such a project requires a critical perspective. But it must be friendly criticism. If philosophers reject the core of contemporary economics, and 'seek to re-orientate the economics discipline' as a whole (Lawson in this volume, 322), they will be confined to a state of irrelevance: ignored by economists busy building their science, but unable to produce a serious alternative themselves. Nevertheless, the Companion includes many highly informative and at times provocative papers on important philosophical questions about economics. It contains twenty-three papers, categorized into three parts concerning political economy, methodology and ontology. The political economy part discusses the use of economic tools for the end of political philosophy, namely to understand and justify social order. Two papers from this part challenge contemporary economic theory to live up to this task. Hargreaves Heap points out that the rational choice model only provides incomplete explanations of institution formation. Coordination games used for this purpose typically have multiple Nash equilibria, and selecting the one that will or should be played requires reference to factors that are outside of the standard model. In particular, Hargreaves Heap argues, reference to convention alone is not enough: what motivates people to select one equilibrium is not only dictated by what they think what others will do (in accord with historical precedent), but what they
SSRN Electronic Journal, 2000
Historical Perspectives on Macroeconomics: Sixty Years after the General Theory, 1998
2015
Jon Elster has made important contributions to several fields, including rational choice theory, political science, and philosophy. The breadth and depth of his writings are striking in a time of high specialisation; he is read and discussed by political scientists, economists, and philosophers. His work is difficult to summarise in a slogan, but virtually all of it has to do with problems of rational choice explanation in social science, much of it as a methodological dimension, and it is generally informed by a broad and deep acquaintance with relevant literatures in economics, political science, history, philosophy, and psychology. In what follows I will discuss Elster's contribu-tions to a series of problem areas: the foundations of the theory of rationality, social welfare theory, philosophy of social science, and analytical Marxism. It is impossible to touch on every point of interest, or even a representative sampling; instead I will single out several important areas of...
Journal of Economic Theory, 2020
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Croatian Economic Survey, 2016
2019
This paper seeks to examine the relationship and the interaction between institutions, policy and the labour market in the light of the ideas of the first generation of institutional economists, who, in contrast to neoclassicals, conceived of the economy as a nexus of institutions, underlining, therefore, the significant role of institutional and non-market factors in the functioning of an economic system. They also criticised those who define (economic) welfare only in terms of efficiency and satisfaction of consumer interests; institutionalists instead focus on issues related to justice, human self-development and labourers’ welfare. In addition, early institutionalists paid considerable attention to the institutional framework of the labour market. In particular, the first generation of institutional economists highlighted the importance of institutions and other non-market parameters in determining the level of wages and employment (e.g. the role of the bargaining power of worke...
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